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Athens stock market worst may be over

Friday, August 07, 2015 - 01:30

After a week in which banking shares crashed more than 60 percent, Greece's stock market shows signs of recovery, ending the first week of the bourse's open since June. But, as Joel Flynn reports, the economic crisis and growing political instability are still huge threats to the country.

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Greece's stock market began the week in a river of red. Opening on Monday for the first time since June, many had expected the sell-off. Banks bore the brunt - more than 60 percent of their value wiped this week. But finally some signs of a recovery - says CIBC's Jeremy Stretch. SOUNDBITE: CIBC Head of FX Strategy, Jeremy Stretch, saying (English): "It does look as though perhaps the worst may be over for now as far as the Greek banking capitulation is concerned, but it has been the case that obviously trading curbs for domestic investors had limited the clearing of prices for the broader equity market." Capital controls and bank closures were also brought in when the Athens bourse was closed. Bailout negotiations since then have managed to keep Greece afloat though. They're still ongoing - with a 3.5 billion euro debt deadline looming on August 20. And, chances are, of kicking the can down the road again. SOUNDBITE: CIBC Head of FX Strategy, Jeremy Stretch, saying (English): "We will see another bridge deal agreed to get Greece across that repayment date to the ECB, because the German finance minister despite the confidence of Mr Tsipras will push back against any deal being rushed through at the last minute." More trouble as well from workers. Flights cancelled and passengers stranded in Athens as air traffic controllers went on strike earlier this week. Political instability in the country too now a worry. Rifts opening up in Prime Minister Alexis Tsipras' Syriza party over the bailout negotiations, which could see the country given as much as 86 billion euros, in exchange for tough economic reforms.

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Athens stock market worst may be over

Friday, August 07, 2015 - 01:30