The markets had eyed the Greek elections for some time. And no doubt, concerns about Greece and their commitment to the European Union have added weight to the free-falling Euro. Well, the market’s concerns were confirmed today, as the leftist party Syriza lead by Alexis Tsipras is declaring victory. The party is projected to have between 149-151 seats, with 151 needed for outright majority.
So why so concerning for the European Union (and Euro)? Â Well Syriza has vowed to end austerity in Greece, pledging to be an anti-bailout government.
Tsipras told supporters: “The sovereign Greek people today have given a clear, strong, indisputable mandate. Greece has turned a page. Greece is leaving behind the destructive austerity, fear and authoritarianism. It is leaving behind five years of humiliation and pain.”
This has heightened fears that Greece could pull out of the Euro, all the while renewing bankruptcy fears. Confidence in the Euro is key, so how this story plays out (and whether it triggers contagion) could be key to both the Euro and European Union.
And this comes after the Swiss National Bank removed the Franc peg to the Euro. This has added another layer of financial uncertainty to the markets.
And the futures markets are showing that concern.  At the time of this writing, the S&P 500 futures were down 13.55 points to 2030.45.  The Euro spiked as low as 1.1099 before recovering to 1.1172 (at the time of this writing). The US Dollar is firm and Crude Oil is down to $44.92.  As well, Gold is up 3.10 to 1296.70.
EUR/USD 5 Minute Chart
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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
