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Markets Move Lower Following Greek Elections

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  • Description

    FBN’s Diane Macedo breaks down the stories moving the markets ahead of the trading day.

  • Duration 5:07
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This transcript is automatically generated

This is they.

Imus morning program on the fox.

Good morning everyone -- new Democracy Party will work to try and form a coalition government after narrowly winning the country's parliamentary election.

Fox business -- that she Webster's in Athens with the latest in -- what's next.

Well now it's -- job above the new democracy leader and -- some RS the victorious candidate.

To try and form some -- -- -- sort of coalition government and he is already begun that process.

It's very important because this country -- -- went -- to governments and with an economy that's in its fifth year of recession.

We do know that whoever leads his coalition governments -- -- and some of the other parties.

They will try to renegotiate in some form the austerity measures that have been put in place.

In order for Greece to get its bailout money.

Perhaps if nothing else given more time to get -- reform measures in place and given more time to pay back the money so there's a lot at stake.

But what I find interesting today -- the markets that initially moved higher have now template those gains.

And perhaps more worrying is the fact that -- costs in both Spain and Italy are starting to move Paez Spain above 7%.

Which is considered unsustainable.

And Italy already close to 6%.

Greece by comparison to those two countries is relatively small as we know Spain has already had a bailout for its banking system.

But will -- require a full blown bail out.

And candy eurozone handle an Italian collapse of its economy many economists say no but in the meantime Greece trying to get -- government together.

And we shall see -- continue to follow that throughout the day Diane back to you.

All right -- thanks so much for that and now let's take a look at the markets here in the US futures are down across the board.

We've seen markets across the globe certain let go of those gains made from the news of the Greek election Dow futures are currently down by 46.

The S&P down by for the NASDAQ down by two -- -- -- stuck there also got an initial boost from the Greek news but concerns about Spain.

Are weighing down on the markets after its borrowing cost jumped to more than 7% on the ten year bond.

We haven't seen that level.

-- Euro -- existence in the last time it came close.

We needed assistance -- -- stocks are currently makes London's up by sixteen Paris is down by three.

And Frankfurt's up by 38 let's take a closer look at what's moving the European markets -- IG markets sales trader will head in over in London.

Will worries over debt problems in Spain and Italy.

Have already wiped out the market gains from the -- election as Spanish ten year yields rose past 7% their highest level in the Euro lifetime.

And it really -- more than 6% we keep hearing.

These countries are too big to bail out so how do you expect this to play out.

What I sacrificed -- played out very well this morning Diane army who assist source and repeats -- -- To the reaction.

The news loss weakness Spanish right now strong -- early -- in trading year and then.

Phasing out -- perhaps even quicken based on the -- and anywhere over its fifteenth to play out.

-- -- -- -- -- We go to one allow overall increase in how the F coalition talks are -- that have been as you -- the Spanish Italian yields climbing I brought on coma three we've seen the Spanish market no.

General -- Italian market giving away -- just like we have seen.

In London Annie Jennings bad -- states that we had out Spain this morning speaking the market off to that an issue.

I euphoria from Greece and any sending us the another -- usual Monday.

And that's encourage more pessimism here well but some analysts are now saying even after the election there's still at least a 5050 chance.

Greece still could leave the eurozone over the next -- -- do you agree and how should investors play that.

Well I think I've had some commercial route 5050 but it's still affecting down the -- -- hasn't completed on the -- the possibility I would go through the first hurdle.

Overbilled the government crisis in -- in that they at least into the -- they had.

Policy with the biggest majority -- -- to -- -- -- holding.

When a number of seats is one of the -- -- out policies and now we're long and then together successfully fooled.

Government if that's the price -- we that the chances of the have recently in Europe perhaps move much much -- -- -- up for the time -- I think -- walk.

They -- -- around now know we've seen in the policy they struggle to form governments is congregations of really struggled to come together that so I think we're gonna be focusing on that again before -- we -- we would have has been talking about how this weekend was incredibly important.

Broad -- on old -- point in this whole scenario and I think that's gonna continue throughout throughout the week with this Greek -- discussions this once -- get the other sort of rise if they got a -- -- -- perhaps we can -- to look forward.

I do with the problems in Spain and Italy.

-- -- -- -- in from IG markets over London thanks them.

Let's take a look at commodities now oil and gold there's still bogged down -- down by almost a dollar now already 83 dollars a barrel.

Gold is down by almost six bucks now at 1620 to announce.

Coming up this sour Imus his guests will be sportscaster -- -- Imus in the morning continues right now on Fox Business giving -- the power --

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