Two pro-bailout political parties in debt-riddled Greece are working hand-in-hand to create a new government and stability in the nation that remains in danger of defaulting on its loan obligations and being removed from the 17-nation euro zone, according to published reports.
Results of Sunday's second elections in six weeks established the New Democracy party in first place and the Pasok party in third place, both being in favor of bailout loan money for the Aegean nation, according to Bloomberg. But sandwiched between them in second place is the Syriza party, which adamantly opposes the austerity measures.
"What stands out is how close SYRIZA came … so we expect some robust opposition to the austerity measures," currency strategist Daragh Maher with HSBC told Reuters. "Markets will be concerned about how narrow the margin of victory was for ND and any gains in the euro and other markets will be limited."
May 6 elections did not produce a clear winner, mandating the second go-round as the world watched and markets trembled.
The common currency of the European Union is projected to gain in the aftermath of the election returns, according to Reuters. Italy and Spain, two countries struggling under the vice of the euro debt scourge, also are projected to see a slightly brighter outlook.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
