‘SunWorldwide’- Worldwide Economics– (Concerns Remain Despite Greece Plan)...

April 6, 2010 - PRLog -- http://www.sunworldwide.com analysts have cited the muted response to the finalization of a last resort rescue package for Greece as an indication of the broader market concerns over several other vulnerable European economies.

After weeks of debate and negotiation, Germany and France finally thrashed out the terms of a safety net which includes loans and cash but it can only be disbursed with a unanimous euro zone vote.

The euro rallied of a 10 month low against the US dollar as dealers rushed to close out bets that the euro’s decline would continue. This drove the currency up and had the knock on effect of boosting commodities like oil and precious metals which are priced in dollars.

“SunWorldwide” sources say the firm remains concerned about the other members of the so-called PIGS group of nations that are likely to face increasing pressure in the months ahead. The consensus amongst the firm’s analysts is that the plight of Spain will come to the fore next. Nevertheless, ‘SunWorldwide’ welcomed the boost to sentiment and speculated that the news would underpin risk sentiment over the short term.

“SunWorldwide” believe that the involvement of the IMF in the rescue deal may one day return to haunt the EU as it could potentially signal to investors that the euro bloc is unable to handle problems by itself.