Instant view: Greek government wins vote of confidence
The Greek government won a vote of confidence early on Wednesday, overcoming a first hurdle in winning new financing to avoid bankruptcy.
COMMENTS:
DAVID MANN, REGIONAL HEAD OF RESEARCH, STANDARD CHARTERED, NEW YORK
It's an anticlimax. We've avoided an extremely negative event. I think that's why we have the spike higher in the euro...I think we're going to see a lot more volatility. People are focused on what's next. In all likelihood we're still going to be worrying about what is next for Greece in the next few days and weeks at least.
We've just avoided a major immediate negative shock. There's a need for something to change in Greece and ultimately for a restructuring to happen the need is still there. That has not changed.
NICK KALIVAS, VICE PRESIDENT OF FINANCIAL RESEARCH & SENIOR EQUITY INDEX ANALYST, MF GLOBAL
The big issue is going to be how much momentum there is for the austerity to be passed over the next couple of weeks, it's a very big austerity plan. There is a general belief that it will be passed as there is no choice but to do it. The market is essentially assigning a high probability of it being passed and therefore I think a lot of it was discounted over the last couple of days and that's why you're not seeing a big impact right now.
BRIAN DOLAN, CHIEF STRATEGIST, FOREX.COM, BEDMINSTER, NEW JERSEY
Part of it is a buy-the-rumor, sell-the-fact reaction. This is the feel-good moment, but they still have to pass the austerity package and implement it. And the Greek government's performance in the past does not leave me too optimistic that these deficit target scan be met. Default may have been avoided for now, but the debt overhang remains. For the euro, there's still some upside potential as long as we hold above $1.4360, but getting to $1.45 is going to be a tough slog.
JJ KINAHAN, CHIEF DERIVATIVES STRATEGIST, TD AMERITRADE, CHIGAGO
This vote in confidence clears the way for some austerity measures. The reason the reaction is muted in after hours trading is because until we know what those measures are or how easily they will be accepted, then U.S. markets will have a chance to react.
BRETT RYAN, ECONOMIST, DEUTSCHE BANK, NEW YORK
In the near term there is some comfort that investors can draw from the vote. It makes it that much more likely that the ECB will go ahead with the next round of bailout funds. However, in the long term, it remains to be seen how the situation resolves itself.
DAVID DIETZE, CHIEF INVESTMENT STRATEGIST, POINT VIEW FINANCIAL SERVICES, SUMMIT, NEW JERSEY
Although this clearly is not going to be a long-term fix, investors see this as a chance that the can will be kicked further down the road and so I think we are going to see tomorrow a world-wide push to risk assets.
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