The Athens stock market has reopened — having been shut for five weeks — and it has promptly plunged by more than 22 percent.
The selloff is hardly a surprise since bank shares make up 20 percent of the main Athens index, and they’ve been hammered in this crisis. But the sharp fall in share prices also reflects anxiety about the third bailout deal, agreed on in principle by the government and its creditors last month.
Over the weekend, the ruling Syriza party postponed an internal vote on whether it should accept the deal. If it doesn’t, there could be another snap election and that could mean more uncertainty for investors around the world.
“Don’t underestimate the power of Greece to rock markets going forward,”says Kathleen Brooks, a currency analyst with Forex.com.
Click the media player above to hear more.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
