Greece turmoil may affect Canada stocks


10th May: Uncertain Greece conditions are likely to impact Canadian stocks in a big way.

Canada stock market opened on a negative mood following Greece and France weekend elections led to yet another round of doubt over Europe’s ongoing debt crisis.

Instability engulfs Canada stock markets—The Loonie (Canadian dollar) tumbled nearly two cents Thursday due to risk factor felt by traders following indecision regarding weekend Greece  elections. Traders were in no mood to go for high risk commodities.

Canada stock marketFrance is also on the minds of traders. They are dying to know how Europe’s present plans for solving its debt crisis will be affected by the new president of France.

The TSX Venture Exchange went down 7.63 points to touch 1.397.42.

So, they preferred to place their bet for US treasuries rather than losing their money on Canadian loonie. Falling copper and oil prices also dampened the Canadian currency to a certain extent.

The Loonie registered a decline of 0.11 before going down to 100.34 cents US.

The scene was no better with US futures plunging further as traders seemed pessimistic regarding US recovery pace. US stocks showed a dismal outlook with a downfall of 29.74 points in the Dow Jones industrials to reach 12,008.53.

The fact that the US economy churned out merely 115,000 jobs in April showed spread gloomy future for the US.

Future no better—Analysts worry—Its not just the present condition in Greece that is creating a pessimistic scene in the economies of the world. It is the hopelessness about the coming times that is adding to the global woes.

The question in all minds is—‘What may happen next?’ It is this unanswerable query that is spreading worries everywhere.

Greece might go insolvent next month in the absence of any government to undertake negotiations regarding the next financial bailout level. And this likelihood of insolvency of Greece is going to spread its wings to the global economy.

According to a market analyst at Toronto’s CMC Markets, Colin Cieszynski, Greek elections add yet another uncertainty layer to an already unstable situation. There is no surety about what the next round may likely be, quipped Cieszynski.

No one knows whether there will be some sort of austerity measures or any balance between austerity and growth, remarked Cieszynski.

Comments by Radical Left Coalition’s head, Alexis Tsipras, added to the market woes.