Saturday 10 December 2016

Greece crisis: European stock markets slump, bond markets risk averse

Published 29/06/2015 | 09:10

Greek bonds (Bloomberg)
Greek bonds (Bloomberg)

The crisis is Greece hit stock markets harder than had been expected this morning while bond markets turned risk averse.

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As investors factored in a potential Greek exit from the euro, the UK's FTSE 100, Germany's Dax and France's Cac all opened lower.

The FTSE was 2pc lower, while Germany's Xetra Dax was down 3.7pc and France's Cac 40 was 4pc off.

The Irish Exchange opened 3pc lower but gained some ground shortly afterwards.

European banking shares also took a hit.

 Spain's Santander was down 8.5p while in France BNP Paribas fell 7pc, while Bank of Ireland was off over 5pc.

In bond markets, Greek two-year bond yields soared more than 12 percentage points to nearly 33pc in thin trade.

Investors sought refuge in safe-haven German government bonds, the euro zone's top-rated sovereign debt, and ditched other low-rated bonds from the bloc's southern periphery.

The yield on Italian and Spanish also rose.

Irish bond yields were down 4 basis points to 1.58.

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