Greek election results reignited concerns over the country's ability to stave off bankruptcy, though losses elsewhere were trimmed on hopes that France's new president may prompt a change in Europe's strategy to fight the debt crisis.
World stock markets were volatile Tuesday as the initial shock from election results in Europe faded but skepticism grew over whether Greece could form a government capable of fixing its financial mess.
The Markit Eurozone Composite PMI Final Data shows the Eurozone downturn accelerates.
Final Eurozone Composite Output Index: 47.9 (Flash 47.3, January 48.6)
Final Eurozone Services Business Activity Index: 47.9 (Flash 47.3, January 48.6)
New Democracy won the Greek election. However, party leader Antonis Samaras still needs to form a coalition.
If this seems like Déjà Vu, it's because it is. We were in the same place following the May election.
Does the Outcome Matter?
This go around, I expect Pasok will reluctantly cave in and form a coalition with New Democracy. The price might be high, such as demanding the much despised Antonis Samaras to step aside.
Regardless, does the outcome matter?
By Sammy Pollack:Late Sunday, election results from Greece showed that the pro-bailout New Democracy party had won the election by a narrow margin. So far, the global markets have responded very well to the news.
A key question on trader's minds is who will win the June 17th Greece election and whether it results in a Greek exit of the eurozone.
Deutsche Bank gives it assessment in a report called Probability weighting EUR views on Greece