European markets are trading lower this morning, picking up the momentum from Asian markets. Investors are nervous about the outcome of the parliament vote in Greece and of course the volatility in the oilmarket.
Greece has failed in its third round of parliament vote to secure a president and this will result in snap election which will take place on January 25. This has created immense problems not only for the country but also for the single currency of the eurozone. The biggest fear is that the anti austerity party could take control of the country and this has caused a spike in the bond yield for Greece. There is also a fear of contingence, and due to this we are experiencing a sharp rise in the bond yields of Italy and Spain.
Brent and crude oil have given up their brief gains yesterday which was mainly due to the geopolitical unrest in Libya. Both commodities made another five year low yesterday on the back of the news that Venezuela confirmed rout in oil prices is mainly due to the US. President Nicolas Manduro confirmed that the oil price is impacting economic growth in Russia and Venezuela.
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam