This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Today’s final round of voting in the Greek parliament has triggered a risk-off mentality in traders, after confirmation that Greece will have to hold elections in the early part of 2015. As a result Greek markets have sold off by over 10%. Greek prime minister Antonis Samaras had been hoping to secure at least 180 out of the 300 votes on offer for his candidate.
Although this is a specific issue for Greece, it will raise fresh fears over the fate of the eurozone and the timelines for the possible implementation of a European version of quantitative easing. An escalation in the debate over austerity could arise in 2015, with the same old north-south divide on what is proportional still raging.