Austerity passes 155-138, markets shrug

Posted by Cardiff Garciaon Jun 29 14:52.

So that’s that.

Other than the outcome and the protests in the streets, there was just one bit of drama related to Wednesday’s fiscal austerity vote in Greece, as reported by Reuters:

Only one member of Papandreou’s Socialist party voted against the law and the speaker of parliament announced he had been immediately expelled from the party.

One deputy from the conservative opposition cast a vote in favor.

And it seems the outcome had been priced in. At pixel time the Eurostoxx 50 and other stock markets across Europe had barely budged. Same for the euro. A bit more from the FT:

The euro had spurted to a two-week high of $1.4447, up 0.6 per cent as traders awaited the outcome of the Greek vote – though clearly the market’s wholesale switch to “risk on” suggested a “yes” had been discounted.

A “yes” was duly delivered, and, typically, the market reacted by taking profits in the single currency, leaving it up 0.2 per cent at $1.4394.

The region’s bourses are also off their highs but still enjoying strong gains, with some speculating that end of quarter “short covering” is providing extra propulsion. The FTSE Eurofirst 300 is up 1.4 per cent, reflecting a positive performance out of Asia, which added 1.4 per cent.

And to give you something more interesting to look at… here are some stills from CNBC’s recent Greek coverage.

This entry was posted by Cardiff Garcia on Wednesday, June 29th, 2011 at 14:52 and is filed under Capital markets. Tagged with , , .

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