Greek elections: Pro-bailout party wins, easing global economic fears, though European, U.S. markets remain cautious
By Dylan Stableford, Yahoo! News
June 17, 2012
Greeks voted in crucial elections on Sunday, with the center-right New Democracy party receiving about 30 percent of the vote, according to the government’s projections. The results will likely keep Greece and its ailing economy in the euro zone and at least temporarily ease fears among the world’s financial markets of the “economic tsunami” that could have been.
Market reactions were mixed. Asian shares rose more than 1.5 percent and European index futures increased, but the gains were erased after the markets opened. The Euro STOXX 50, for example, opened up 1.6 percent, while Germany’s DAX futures rose 1.5 percent and France’s CAC-40 climbed 1.3 percent. Financial analysts are waiting to see whether any positive sentiment would remain by the time the U.S. market opened on Monday, and in fact early readings on stock futures weren’t showing signs of a rally. The euro, meanwhile, was down slightly at $1.26, having climbed as far as $1.2748, its highest level in a month.
According to Reuters, New Democracy took 29.5 percent of the vote and the socialist PASOK party took 12.3 percent–giving the pro-bailout parties a majority or 161 seats in the 300-seat parliament.