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6 Feb 2015
Greek news & ‘Notagian’ – Nomura
FXStreet (Barcelona) - Jens Nordvig, Research Analyst at Nomura, comments on the market response to the recent Greek news, and notes that there is no observable contagion.
Key Quotes
“We had bad news on Greece yesterday, and it initially moved markets (both global risk assets, the Euro, and peripheral bonds). But less than 24 hours later, we have recovered. There is really no observable contagion. Call it ‘Notagion’."
“The S&P is now well above the highs from yesterday. The Euro (vs the USD) is exactly back to where we were yesterday afternoon. Peripheral bond yields are essentially unchanged, with Portugal and Italy actually lower, and Spain slightly higher. Even in Greece, the bonds are essentially unchanged. Impressive."
“The market will be taking note of the lack of tradable spill-overs from what seemed like an important piece of news to many. Hence, there may now be a tendency to fade Greek news (it has been expensive to put too much weight on it recently). This could be the situation for the time being, until we really reach crunch time in Greece.”
Key Quotes
“We had bad news on Greece yesterday, and it initially moved markets (both global risk assets, the Euro, and peripheral bonds). But less than 24 hours later, we have recovered. There is really no observable contagion. Call it ‘Notagion’."
“The S&P is now well above the highs from yesterday. The Euro (vs the USD) is exactly back to where we were yesterday afternoon. Peripheral bond yields are essentially unchanged, with Portugal and Italy actually lower, and Spain slightly higher. Even in Greece, the bonds are essentially unchanged. Impressive."
“The market will be taking note of the lack of tradable spill-overs from what seemed like an important piece of news to many. Hence, there may now be a tendency to fade Greek news (it has been expensive to put too much weight on it recently). This could be the situation for the time being, until we really reach crunch time in Greece.”