Greece abandons referendum.

4th November 2011

Ian Copelin, Investment Director, my wealth, comments, “Most European equity markets climbed for a third day this morning after Greece reduced the risk of a disorderly default by abandoning a referendum on the European bailout plan. Asian exchanges also gained overnight, while U.S. index futures were also showing a firmer start to trading.

The FTSE-100 was up 0.9% (11am) – but is still down 1.86% on the week.

Greek Prime Minister George Papandreou yesterday blinked in his game of chicken and abandoned his planned referendum after it split his party and drew unprecedented warnings from euro leaders that it may cost Greece its membership in the 17-nation currency club. The news has helped instil some confidence back into a market that remains nervous – George Papandreou is facing a confidence vote in parliament today that will determine whether he survives or elections are called.

In the US this afternoon, we have the release of monthly employment data – this is always closely watched, but more so given the Federal Reserve said in its policy statement on Wednesday that recent indicators point to weakness in the labour market.”