Danish share prices have been hit hard by the Greeks’ resounding ‘no’ against Europe’s latest bailout offer, according to the Danish index.
The decision raises a degree of uncertainty regarding Greece’s economic situation and the future of the euro, whilst at the same time sending Danish equities south along with many other stock markets worldwide.
The Danish C20 Cap Index began to dive on Monday morning with a fall of 1.52 percent. At 9.18am this morning, however, the fall had reduced to 0.9 percent.
“There is great uncertainty going forwards,” said Nordea stock trader Jesper Bamberger.
“It all really comes down to July 20, when Greece has to pay a large sum of money to the European Central Bank. The question is whether we should prepare for a Grexit. We still don’t think that it’s game over.”
“There is still hope for a positive outcome between the Greeks and the rest of Europe.”
Greek economy hanging by a thread
On Sunday, Greece shocked the world by voting ‘no’ to the EU reform requirements aimed at rescuing the debt-ridden country from bankruptcy.
The decision came after a dramatic week of Greek bank closures and restrictions on cash distribution.
The country’s economy is still hanging by a thread, and it is likely that Greece will face bankruptcy without further help.
On Monday and Tuesday, there will be a series of summits in Europe, where politicians will discuss what can be done to save the country’s economic status, whilst at the same time not forfeiting the rest of Europe’s needs.
“We still believe that we must have shares. Greece is not the whole world, and the rest of the world is moving forward. However, if Greece’s situation does not improve, there is of course nervousness as to whether the damage will continue to spread,” said Bamberger .
Per Hansen, an investment economist at Nordnet, is not surprised by this nervousness.
“Greece has a huge debt of 320 billion euros, and there is no longer anything to suggest that they have the will or the ability to pay it back,” he said to TV2.
Danish travellers are still being warned to withdraw cash before setting off for Greece, as many Greek businesses are only accepting cash in the wake of the crisis.
