Investors brace for unfolding crisis

Investors will be bracing this week for the next stage of the unfolding global credit crisis after the market’s recent steep losses. The Athens bourse’s benchmark general index gave up last week just over 15 percent with insurance and telecom sectors underperforming, dropping 23 and 18 percent respectively. The general index ended at 2,372 points with the next technical support levels seen at 2,250 and 2,000 points, according to analysts. Greek authorities launched on Friday a ban on short selling of shares, effective until the end of the month. High anxiety is not expected to subside on Wall Street this week as the deepening credit crunch pushes the global economy into recession. Analysts describe the markets as being «emotion driven,» with the start of the earnings season in the US this week being placed on the back burner as liquidity remains the primary concern.

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