Photo: PRI’s Studio 360 via Flickr
Markets are falling.After a huge weekend in Europe, which saw the socialists win in France, and fringe elements take a major slice of the Greek parliament, markets are down across the board.
Though actually the numbers are less worse than they could be.
Spain is off 1.7%.
Italy is off just 0.7%.
US futures are off just 0.7%.
The real loser through: Greece, where the market is down 6%.
Asia was very rough: Japan ended up getting smoked, to the tune of 2.8%, and Korea dropped 2.8%.
If you’re totally just tuning in, the real story is in Greece.
Yes, Hollande’s victory in France over Sarkozy disrupts the status quo, but if anything, he’s on the right side of various reforms (pushing the ECB to be more aggressive, focusing more on growth etc.).
But Deutsche Bank explains why the outcome in Greece was so problematic. Essentially, the major parties took such a huge drubbing that the ongoing bailout process can not be counted on to continue. Arguably Greece is back at square one, and that’s obviously trouble for the markets.