World sees effects of Greek default

SHANGHAICOMP

Global stocks have fallen around 2% over the last week due to the eurozone instability. China’s Shanghai Composite was the biggest loser with a 5% loss in one day. Commodities such as gold, wheat and oil have also fallen around 4%

It’s been an eventful day for the world markets. Following the Greek default on their IMF loan after market closing time many speculators and conspiracy theorists were kept awake waiting for news. Chinese traders were not so lucky; Asian markets were open at the announcement of the default leading to a snap reaction.

Several analysts have credited China’s dramatic drop to the end of its construction bubble. The Shanghai Composite dropped 7.2% in one day on the 26th of June and this will no doubt worsen the situation.

Markets all over the world dipped dramatically by midday, however they mostly recovered by closing time. There was a fall in gold prices as many predicted the Greece would sell its 112 tons of reserve gold.

Agricultural commodities all fell slightly, with the exception of sugar which jumped up 18%.
Livestock also has a rise of around 2%.

All in all, a calm response to the bailout with no great damage done to the West.

About the Author

Patrick Flanagan

Writer

Irish Burkean Conservative. Roman Catholic. Líofa i nGaeilge.

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