With Greece having trouble, it is now pulling other assets too:
- US Dow Jones plunged as much as 9% on Thursday before recovering to end 3% down.
- MSCI’s emerging markets index lost 11% since mid-April.
- Crude oil price has fallen 14% over the past week, with Greek crisis putting the brakes on speculators as well as fears for Chinese growth.
- Commodities indexes have lost 5% in a week.
The question in all investors mind this week would be:
When would this stopped?
The EU summit, called to discuss longer-term efforts to coordinate economic policies, turned into a crisis-management session, with the euro facing its stiffest test since its debut in 1999.
“People worry that if Greece is Bear Stearns, Portugal is Lehman and Spain AIG”. BNP Paribas said during past week, a phrase that gained much circulation last week.
PIIGS (Portugal, Italy, Ireland, Greece, and Spain) can’t fly – the Greece problem. An article by Tan Sri Lin See-Yan saying that these countries need to seek IMF help before it was too late.
Hopefully, the share markets around the world would stop falling as intended by EU.