European equity markets – May 10, 2012

This task is falling now to the Pasok party who ahead of the election had given written assurances that they will continue to adhere and implement agreed austerity measures should they end up in government.

Furthermore, after some doubts have been surfacing yesterday the EFSF has confirmed that a transfer of 4.2 Billion Euros to Greece will be taking place today enabling Greece to avoid a default for now.

While markets currently are managing somewhat to stabilise, gains to the upside are likely to be limited and only temporary with many investors either preferring to stay on the sidelines until things concerning Greece are clearer or simply feeling propelled to take profits on long positions to buy them back again later at cheaper prices.

Generally investors are rather unconvinced that the worst is necessarily over and that markets indeed have seen the lows for now. Focus will be on production data out of France, Italy and the UK, while markets remaining very sensitive to any new developments out of Greece.

Markus Huber – Head of German HNW Trading – ETX Capital
http://www.etxcapital.com