Following the Greek “No vote” European markets have weakened along with the Euro. However, it’s hardly the bloodbath some market watchers were expecting; US stocks opened lower on Monday – but the losses were nowhere near those suffered by the main European bourses.
The S&P 500 was down 0.2 per cent at 2,072 in early trading in New York while the Dow Jones Industrial Average was trading 0.3 per cent lower at 17,683.
This compares to the 1.6 per cent decline on the regional Euro Stoxx 50 index, the 1.5 per cent drop on France’s CAC 40, the 1 per cent loss on Germany’s DAX and the 0.6 per cent retreat on the FTSE 100.
Managers who cover the region are confident that even if Grexit progresses to its final conclusion and we wave farewell to the Greek nation that this will not dent the European economic recovery.
Our portfolios have modest European exposure and we may well add some more on weakness over the next few weeks.
It’s been several years since the markets suffered a set-back and a correction at some point was inevitable. Our portfolios are conservatively positioned at present and the impact will not be dramatic.
If you have any queries please don’t hesitate to get in touch.
