Have Greek Elections Impacted the Resilience of Global Finance?

bigstock_Greek_Crash_7624098

Blog written on February 3-rd, 2015.

After the anti-bailout party has won the elections in Greece, global stock indices have edged up and the Euro has rebounded. The reaction of the markets appears to be, after much trepidation, mild, almost nonexistent. Has the Syriza-effect been compensated by the ECB’s money-printing programme? It is too early to say. This blog provides a brief picture of the resilience of the global financial system just a few days after these key elections for Greece and for the EU.

First of all, the evolution of the resilience of global finance. This is reflected by the Global Financial Resilience Index (GFRI), depicted below.

 

GFRI_02_02_15

After a significant drop in resilience to 50%, and which has lasted for two weeks, and which may have reflected the anticipation of the Greek elections, the system is regaining resilience, climbing to over 65%. Today, a week after the elections in Greece the GFRI is at 66%.

In terms of major market indices the situation is as follows (the GFCI is the mentioned global financial system meta-index):

Indces_02_02_15

In terms of market sectors, the situation is, on average, slightly better:

Sectors_02_02_15

 

We will be tracking the above indices and markets and reporting periodically the corresponding values of resilience. This will give a better idea of the dynamics of the response of global finance not only to the situation in Greece but also to other geopolitical events.

 

 

www.assetdyne.com

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s