The risk of early parliamentary elections in Greece, possibly as soon as January following Prime Minister Samara’s decision to dash for an early presidential election, has sent a shockwave through the stockmarket.<br /><br /> It had its worst day since 1987, seeing 10.5% wiped off share values as investors ran to sell out.<br /><br /> “So if you have an international investor in the country you are exposed to and it’s going into elections or there is a possibility that the country will go into elections and you don’t know the final outcome, then the easiest decision you can make is just to sell and get out,” said<br />Theodore Krintas, financial analyst, Attica Wealth Management: <br /><br /> Ten-year bond yields rose half a percent on the news, which carries the risk that parliament will not agree on a new Head of State, and this would trigger an election at a time the leftwing Syriza opposition is riding high in the polls. A Syriza government would likely renegotiate much of Greece’s imposed austerity package.<br /><br /> “Traders in Athens talk about a “Black Tuesday” that led to the biggest daily fall since 1987. Investors think the government decided to gamble by bringing forward the presidential election and now they are looking for a way out of the Greek market,” says euronews’ Symela Touchtidou, in Athens.
