Greece PM on Stock and Bond Markets Decline

Greek stocks and bonds continued to drop and reached lows that were never seen since the height of the nation’s debt crisis several years ago.

Even then, Prime Minister Alexis Tsipras vowed that his government will do everything to stay away from a disastrous conflict with international creditors and EU neighbors.

Profit on three-year Greek notes increased (275 basis points) to 16.77 percent in New York markets. This was up from 10.08 percent last week before the snap polls elections brought the Syriza government to power.

Standard & Poor’s 500 Index on futures went up 0.3 percent while the Index on NASDAQ 100 futures scaled up one percent. Meanwhile, STOXX Europe 600 put in less than 0.1 percent. The standard general Index in Athens plunged 8.5 percent to the lowest level since two years ago. An indicator of Greek lenders plummeted to its lowest level since 1995 with the National Bank of Greece and other banks declining by a maximum of 23 percent.

During the inaugural meet of the new cabinet, Tsipiras promised to renegotiate conditions of the country’s bailout.

He appointed a new cabinet composed of a foreign minister who questioned EU sanctions versus Moscow as well as a finance minister who described the bailout as a trap.

The Federal Republic of Germany cautioned Greece against walking away from previous commitments on financial assistance after economic analysts claimed that pitting Greece against its European peers can hasten its departure from the EU.

Observers said that the situation remains negative while everyone is waiting if the leftist government will reach an agreement with lenders.

Tsipras said his government is prepared to negotiate with other euro region governments.