Alexis Tsipras, leader of anti-austerity Syriza may hold the world's stock markets in his hands
U.S. stocks continued falling for a fifth day, sending the S&P 500 Index a four-month low. The reasons included Eurozone problems, including Greece and Spain, and weaker than expected U.S. economic data.
Bloomberg reports;
Nine out of 10 groups in the S&P 500 declined as an index of leading indicators slid and manufacturing in the Philadelphia region unexpectedly shrank. Caterpillar Inc. and JPMorgan (JPM) Chase & Co. dropped at least 2.9 percent. The Nasdaq-100 Index fell for an eighth day, the longest slump since 2010, as Apple Inc. (AAPL) sank 2.2 percent. Wal-Mart Stores Inc. (WMT), the largest retailer, rallied 5.5 percent as profit beat analysts’ estimates.
“Investors are de-risking,” said Tim Hoyle, the director of research at Radnor, Pennsylvania-based Haverford Trust Co., which manages about $6.5 billion. “They look at a global situation that appears to be degrading, not improving. There’s economic data weighing today, there’s concern about a domino effect in Europe. It’s not only about the Greeks pulling out. It’s about what happens to Portugal and Spain and Italy.”
Greek voters will go to the polls again on June 17, with the anti-austerity party, Syriza, leading in the polls and making the possibility of a governing coalition very uncertain.
If Greece rebels against EU austerity, it is most likely the bailout deal will unravel and lead to a Greek default and exit from the euro.
In other reports, Moody’s Investors Service is said to be preparing to announce the ratings downgrades of several Spanish banks today.
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