Focus of the Week: GREECE crisis – World wide version
With Greece having trouble, it is now pulling other assets too: US Dow Jones plunged as much as 9% on Thursday before recovering to end 3% down. MSCI’s emerging markets index lost 11% since mid-April. Crude oil price has fallen 14% over the past week, with Greek crisis putting the brakes on speculators as well as fears for Chinese growth. Commodities indexes have lost 5% in a week. The question in all investors mind this week would be: When would this stopped? To contain the infections, Euro zone leaders decided on Friday they have special measures ready before financial markets open on Monday to prevent financial turmoil in Greece spreading to other countries such as Spain and Portugal. However, European Commission President Jose Manuel Barroso declined to give any details of the proposals, which will be presented to all 27 EU finance ministers for approval on Sunday. The EU summit, called to discuss longer-term efforts to coordinate economic policies, t...