Wednesday Jul 30, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Markets absorb Greece's bond market return

By Pan Pylas

Markets in Europe traded in fairly narrow ranges Thursday as the successful return of Greece to bond markets following a four-year absence helped further steady the nerves following a turbulent start to the week.

Greece, the country at the forefront of Europe's debt crisis over the past few years, has managed to sell 3 billion euros ($4.1 billion) of five-year debt at a yield below 5 percent. To put that in context, the rate Greece has had to pay is around half that which Russia has to pay for the equivalent debt and comes even though the country has yet to emerge from a savage recession and remains lumbered by a debt burden of around 175 percent of gross domestic product.

“Overall, this debt sale is a triumph in financial terms,” said Kathleen Brooks, research director at Forex.com.

Brooks credited the success to a number of factors, including the so-called “Merkel Guarantee,” a reference to the pledge made by German Chancellor Angela Merkel during the financial crisis to keep Greece from exiting the euro bloc.

Risks remain for Greece, notably on the political front. But even there, analysts noted signs that the vast majority of people in the country want to stay within the 18-country eurozone.

“Considering everything Greece has been through one could argue that it is surprising that there hasn't been more of an anti-European stance taken by the people,” said Gary Jenkins, an analyst at LNG Capital.

One sign of the confidence in the Greece's economic prospects has been the sharp rally in Greek shares over the past few months alongside the slide in the interest rates on the country's openly-traded debt. Following the debt sale, the main stock market in Athens, the Athex, was down 0.2 percent at 1,290.

Reduced concerns over Greece and the future of the eurozone have also helped shore up the euro itself, which is trading near multi-year highs at $1.3865.

Elsewhere in Europe, the FTSE 100 index of leading British shares was up 0.1 percent at 6,642 while Germany's DAX fell 0.2 percent to 9,492. The CAC-40 in France was 0.2 percent lower at 4,433.

Wall Street was poised for a flat opening following two days of solid gains - Dow futures and the broader S&P 500 futures were down 0.2 percent.

There's been a calmer backdrop in markets over the past couple of days after a Nasdaq-inspired retreat started at the end of last week. Aluminum company Alcoa kicked off the quarterly corporate earnings season Tuesday with a solid set of numbers, helping to ease concerns across financial markets.

Earlier in Asia, markets in Hong Kong and Shanghai rose sharply on plans to link the bourses that would widen access to China for foreign investors. Hong Kong's Hang Seng gained 1.5 percent to close at 23,186.96 and the Shanghai Composite added 1.4 percent to end at 2,134.30.

Most other Asian benchmarks finished with modest gains. Tokyo's Nikkei 225 stock average ended unchanged at 14,300.12 while South Korea's Kospi rose 0.5 percent to 2,008.61. Australia's S&P/ASX 200 climbed 0.3 percent to 5,480.80. [AP]

ekathimerini.com , Thursday April 10, 2014 (14:51)  
Deals reached for twin plot on Afandou, for 42 million
More delays and red tape for companies’ tax rebates
Greek shipowners continue to invest in fleet renewal
Trainose sale is not on track
Troika review in Athens unaffected by Paris meeting
A meeting between troika and Greek government officials in Paris at the beginning of September does not mean that representatives of Greece’s lenders will not then travel to Athens to carry ...
Soldiers set to sue over wages
Members of the armed forces and emergency services look set to take legal action to have their wages restored to pre-2012 levels after the government suggested it would not raise their pay t...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Deals reached for twin plot on Afandou, for 42 million
2. More delays and red tape for companies’ tax rebates
3. Greek shipowners continue to invest in fleet renewal
4. Trainose sale is not on track
5. Industry asks for gov’t intervention
6. Troika review in Athens unaffected by Paris meeting
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. World’s largest solar boat on Greek mission
4. Venizelos to meet Nimetz in Athens
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. More than 120,000 households to receive special benefit
Today
This Week
1. Unequal after death
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
4. Quadriplegic woman on life support 'dies due to unpaid power bills'
5. Front-line threats
6. Defense Minister Avramopoulos to represent Greece at European Commission
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.