Central banks ready to support markets after Greek vote

Date: Friday 15 Jun 2012

European markets opened slightly firmer on Friday, taking their lead from Wall Street, which rose on reports that the world’s central banks are preparing to inject liquidity into the system to ease possible market strains after this Sunday’s elections in Greece.

Global monetary authorities are ready in the event that liquidity is required to ensure that there is sufficient cash is flowing through the financial system, G20 officials told Reuters.

According to the news agency, a “senior G20 aide familiar with discussions among international financial diplomats” said: “The central banks are preparing for coordinated action to provide liquidity.” His statement was reportedly confirmed by “several other G20 officials”.

The news will provide some comfort as markets brace themselves for what is expected to be another non-decisive general election in Greece. Most experts expect the elections to show no clear winner, forcing political parties into coalition talks which may prove no more successful than the horse-trading after the last indecisive election. Nerves are on edge as the fate of Greece in the euro is expected to depend on the outcome.

PO

Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange Market.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE