Today we got a great example of the speed at which gigantic global markets respond to news.
During the midst of the austerity debate, there was a bit of a surprise when one member of the ruling PASOK party voted NO on austerity. It never appeared likely to change the outcome, but just the words “RULING PARTY” and “NO” appeared briefly in headlines on Bloomberg terminals around the world.
In that instant, the euro plunged, and German Bund yields tanked, as everyone rushed for safety, before (in an instant) it became obvious that there was nothing major happening, and everything would be fine with the vote.
Bottom line: It doesn’t take much to get gigantic moves in some of the biggest markets in the world.
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