Press Release (ePRNews.com) - RAFFLES PLACE, Singapore - May 11, 2016 - Prime Asset Capital
European Markets Mixed – Greek Bailout Concerns Rise, UK Brexit, Italian Bank Worries
The major indexes in Europe closed mixed yesterday as rising concerns about Greece’s next tranche of bailout funds, the UK leaving the EU and Italian banks issue warnings start to weigh on the markets.
After starting the week with a positive sentiment, EU Finance Ministers are now looking for further concessions on the Greek Bailout program. After agreeing the €86bn bailout last year the Greek government has been coerced into pushing thru significant reforms to secure the funds.
At the time Athens was seen as accepting any terms the IMF or ECB put in place, regardless of public sentiment. This saw a change in government and a hardline liberal government take office. Since then there has been protests and strikes as the new government looks to secure the bailout funds without accepting further austerity measures from either of the 2 governing bodies.
Pension reforms and state spending have been the most recent items to come under scrutiny and the IMF has been very vocal on its thoughts about whether Greece can provide the assurances needed for it to continue its support.
After agreeing to a new Privatization fund and further pension reforms earlier in the week concerns have now arisen after a report was leaked from the IMF and Christine Lagarde stating concerns over the debt relief promised to Greece for 2018 should it manage to keep to the reforms proposed.
Both the IMF leader and the German Finance Minister have expressed their disdain for further relief with the German minister commenting that Greece does not need further bailout funds. Concerns are that once the payment is made the reforms will not be put in place sufficiently to start paying back both the European Central Bank and the International Monetary Fund.
The worries over Greece come at the same time as the UK faces a referendum on whether to leave the Eurozone. Economists are mixed as to the effect such a move would have on both the UK and the EU economies however general sentiment is pushing towards an exit despite government warnings about leaving.
Just a few weeks after the Italians created a bailout fund for their banks, earnings warnings are being reported much to the dismay of local traders. With Industrial production in Italy falling and banks coming under pressure the local economy is slipping further behind its peers in the EU and could be seen as the next country to face economic reforms just as Greece did last year.
Major European Market Closes 11th May:
FTSE 100 – 6,162.49 (+0.09%)
DAX – 9,975.32 (-0.70%)
CAC – 4,316.67 (-0.50%)
ASE – 619.06 (-1.63%)
Since 2005 Prime Asset Capital has helped our clients plan for the future and achieve their Financial Independence and expand their target goals. We believe that building trusting and long-lasting relationships with our clients is the key to crafting comprehensive Wealth Management plans that deliver Long-Term Security and Success. We boast exceptional personal attention, delivering Individually-Tailored Financial Solutions and Professional Services that consistently exceed our clients’ expectations.
Visit http://www.primeassetcapital.com for more information. Source :
Prime Asset Capital