Despite a win by the pro-bailout ‘New Democracy’ party in the Greek legislative election, European banking stocks have plummeted.
Image by fdecomite via flickr
Banks across Europe, including Commerzbank (down 3.6%), Deutsche Bank (down 1%), BNP (down 3.3%), Royal Bank of Scotland (down 4.4%), and Credit Agricole (down 2.9%), saw their shares fall in the aftermath of the historic elections.
These figures showcase a stagnant distrust in European markets that even the promise of a Greek bailout cannot remedy.
Analysts told the BBC that the Eurozone remains in crisis. While the election results may have been an initial relief, the problems facing Europe are now known to be much larger than Greece alone.
More recently the financial instability of Spain and Italy has been in the spotlight, wreaking havoc on market confidence across Europe.
Still, the media has been quick to label the election results as hopeful, or at the very least an event that provides some European governments some ‘breathing space.’
Basically, things are still bad - very bad - but they could have been worse.
At the moment, Europe’s top leaders are convened at the G2o Summit in Mexico, where Greece, Spain and the overall Eurozone crisis is very much on the agenda.
What do you think about the Greek election results? Any thoughts on the furture of the Eurozone? Let us know what you think in the comments section below.
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June 19, 2023
banking, news