German bomb "destroys" the ASE

The ASE could not avoid the new collapse since now the question of the country’s exit from the Eurozone is a potential risk or a formal danger caused by the Europeans (Dutch Prime Minister Routte and German Finance Minister Schauble), since officials of the OECD indicate that the passing of bonds is stuck at 75%, while at the same time recession statistics announced in the last semester is even higher, reaching a most unrealistic 8%.

The ASE general index literally collapsed, with a reduction of 4.59% to 866 units and once more, banking shares dissolved. It is characteristic that the National Bank fell by more than 10%, closing at barely over 3 euros, and Alpha Bank’s decline reached 12.5%, while Eurobank and Piraeus Bank lost over 8%.

Generally, 91 shares showed a reduction against 43 which showed gains, while turnover was around 55 million euros. The 10-year bond spreads rose even more, reaching 1825 units.

At the same time, and given that ECB head Jean Claude Trichet did not surprise us positively by cutting euro interest rates - the principal remains at 1.5%, initial momentum shown by European markets weakened, and the index in Frankfurt while the ASE meeting was drawing to a close was but 0.5%.

Within this backdrop, it was reasonable that the Euro was weakened, after a morning drive to $1.41, barely keeping above the $1.40 barrier.