Eurozone markets eurostoxx ftse dax cac
Political turmoil returned after Greek prime minister Alexis Tsipras resigned last night. The move triggered another round of elections and could threaten the stability of the country’s latest bailout.
“We did not achieve the agreement we expected before the January elections. I feel the deep ethical and political responsibility to put to your judgment all I have done, successes and failures," he said in a televised speech.
Analysts said snap elections could jeopardise further disbursements from Greece's third, three-year bailout deal. These are dependent on Greece implementing domestically unpopular reforms such as as changes to its health, welfare, pensions as well as its taxation systems.
Asian markets suffered overnight after a grim manufacturing survey increased concern over China's economy. The Caixin/Markit manufacturing purchasing managers' index posted its lowest reading since March 2009, the depths of the global financial crisis. This sent the benchmark Shanghai Composite down as much as 4.6 per cent.
"China today is no longer just the 'factory' of the world. It is an important consumer of the world's products and services. Many companies and industries depend on the Chinese consumers who are now 'disadvantaged' in purchasing power," Nicholas Teo, market analyst with CMC markets, said in a note.
""So when it sneezes', many around the globe may just catch a cold!"