In the after hours, an historic vote in the parliament of Greece cleared the way for the debt ridden nation to receive another bailout.
By surviving a vote of confidence, Greek Prime Minister George Papandreou has demonstrated to the EU that his majority party can get new austerity measures passed, despite growing public opposition.
That’s important because those austerity measures are a pivotal condition, that Greece must meet to receive the next batch of funds.
Although the outcome was considered extremely likely, now that Greece has cleared this hurdle the chances of a ‘Lehman-like’ financial meltdown are far less likely.
On Tuesday’s Fast Money's Melissa Lee and the gang provided in depth coverage of events as they were unfolding and how to position.
Following you’ll find the impact on…. markets. Or click below for the impact on another area:
We’ve broken it down as follows:
- Impact on Markets- Impact on Currency- Impact on Banks- Impact on Commodities- Impact on Europe’s future- Derivative Trades
Impact on Markets
Trader Guy Adami thinks the market is looking at a 'sell the news' kind of event. In other words, he thinks these developments were completely priced in on Tuesday, ahead of the vote. “I’d go short against 1300,” he says.
Although Tim Seymour agrees with Guy Adami that the results were already priced into the S&P – he thinks as a result of the vote the market makes gains. “(Now) the risk is that investors need to be long and are not long enough into quarter’s end.”
Joe Terranova is also constructive. He thinks the developments in Greece are another catalyst that generate market stabilization. As a result of the vote, “I see less downside risk in the market,” he says. But that’s just one sign. Terranova also thinks positive momentum in energy, tech and materials is bullish because they were rally leaders, earlier in the year.
Going forward he says watch for yields on Treasurys to spike – if that should happen he would consider it a sign that money is rotating out of safe haven bonds and into higher risk equities.
Karen Finerman is also expecting a rally into the end of the quarter. However she reminds the desk that although the vote was a big hurdle, it’s hardly the only hurdle. “Buy some protection,” she counsels.
