Tuesday, May 8, 2012

FTSE 'Cautious' As Eurozone Crisis Returns

On opening after the long bank-holiday weekend, the FTSE 100 index dipped by 0.1% before edging back to trade up by 0.1%.

Political uncertainty returned to the eurozone after socialist Francois Hollande beat current president Nicolas Sarkozy in the French presidential election, and the general election in Greek failed to produce an outright winner.

As both results indicated a public and political sea change against austerity, the eurozone sovereign debt crisis entered a new chapter - sending markets within the single currency bloc into chaos.

The stock market in Athens fell by 7% yesterday after mainstream parties fell short of a governing majority in Sunday's election, putting at risk hard-won agreements to save the country's economy and eurozone membership. Read More