Yesterday, Greek Prime Minister George Papandreou announced that the country should approve a referendum on its rescue package, even amid signs that Papandreou’s government may collapse. Nevertheless, “the referendum will give a clear mandate and send a powerful signal within and outside of Greece about our European course and our membership in the Euro zone,” Papandreou said this morning before his ministers in Athens. The cabinet voted unanimously to approve the plan.
According to DT Trading analysts, Papandreou’s actions are ruining plans on resolving the two-year crisis by issuing a plebiscite on Greece’s rescue package and calling for parliament to express an analogous vote of confidence in the government. All over the world yesterday, stocks, European government bonds, and the Euro all fell due to fears that the plebiscite will negate plans to avoid a default.
Futures on the Standard & Poor’s 500 Index were up 0.8%, while the MSCI Asia Pacific Index dipped 0.5%. The Federal Reserve is most likely developing the parameters for its next round of large-scale asset purchases. According to a survey of 42 economists carried out October 26-31, 69% of economists say that Fed Chairman Ben Bernanke will introduce a third round of quantitative easing, or QE3, while 36% predict that this will happen no sooner than in the first quarter of next year.
DT Trading Limited Analytical Department
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