Greek situation causes more uncertainty
The FTSE 100 index lost gains made on Wednesday, with investors still uncertain as to the potential outcomes from Greece’s critical upcoming elections.
Eurozone concerns continue to weigh heavily on markets. In addition to the impending vote in Greece, an Italian bond auction later today and the downgrading of Spain’s debt rating by Moody’s have driven the problems of some of Europe’s keystone economies firmly back to the forefront of investors? minds, contributing to the fall back of the FTSE 100 today.
The metal mining sector led the retreat, with investors concerned about a drop off in European demand for manufacturing commodities.
With the outcome of the Greece election hanging in the balance, it’s still unclear whether the new Greek government will agree to uphold the current austerity package levied alongside the country’s bailout fund or not. And with the outcome expected to go down to the wire, investors are consciously avoiding taking positions where they may find themselves on the wrong side of the market come next week.
BSkyB was another heavy faller, dropping 7.6%, in the most part due to the unexpectedly high costs of securing a new three-year contract with the Premier League to show football matches exclusively on the network that were revealed yesterday.
The cost of the agreement rose 70% from the last contract between the parties, and was more than £100m pounds per year more than the markets had been expecting. However, with the issue that had been up in the air now resolved, the share price is expected to recover quickly.