Neither Euro Nor Risk Appetite Find Much Optimism in Greek Election
One of the most critical events for the Euro and underlying sentiment itself has come and gone: the Greek election. What really surprised in this event was not the outcome, but rather the surprising market reaction. In an ideal world, a 'positive' result for the vote (one that keeps Greece in the Euro Zone and keeps the balance between stimulus and austerity status quo) could have led to a strong recovery for the shared currency and capital markets themselves. Instead, the euro is still under pressure and a recovery in confidence remains elusive. If the markets are discounting positive developments with a mind towards the long-term issues that persist, we may be facing a discouraging reaction to the greatest hope for a near-term capital market rally - the Fed rate decision.