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 Melissa and the gang provided in depth coverage of events as they were unfolding and how to position.
Following you’ll find the impact on…. commodities. 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 Commodities
Shelley Goldberg of Roubini expects developments to be euro positive and therefore dollar negative. “And a weak dollar is supportive of commodities – they have a negative correlation,” she says.
However she also says commodities are still facing headwinds including regulatory issues and tightening in emerging markets.
On a related note, she sees the risk premium coming out of oil . At least in the near term she expects oil to trade between $80 - $85.
Tim Seymour is bullish industrials. At a recent steel conference he says, “Steel CEOs said they’re not seeing price erosion. They’re seeing stabilility. That suggests to him that the bottom is not falling out.