Sunday marked the first piece of good news for the Euro in weeks. Greece have, effectively, voted themselves into perpetual debt slavery, at least until the next election which, given the slim majority enjoyed by the ruling coalition could be as early as this fall. But, for now, Greece has decided in a fit of pique more resembling Stockholm Syndrome that staying in the Euro was better than the big scary room with the blue ceiling and no more handouts from the Germans.
I guess they don’t believe they’ve gotten enough reparations for WWII yet. I’m inclined to agree with them, but there’s got to be a better way than this.
The Euro (AMEX:FXE) was up immediately over $1.27 on the news and if the coalition government comes together quickly the printing presses will begin in earnest. The Euro will likely bounce all the way to $1.30 or so on short covering alone. All of the Asian markets were on fire right from the open. The Nikkei 225 (AMEX:NKY) broke out of consolidation into the 8700 area. If the Nikkei holds above 8650 for the week that would be the signal for a medium-term rally in Japanese stocks.
The Hang Seng and the Straits Times Index (Singapore) also put on breakout moves, all of which follows on the heels of the strong close on Friday by the S&P 500 (AMEX:SPY) which seemed to smell a favorable outcome in Greece.
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