All Eyes on Greece Election, Will Greece Exit, Will Central Banks React? The situation got a bit complicated just ahead of the crucial Greek elections. On the one hand, news flow from Europe were generally negative, with soaring peripheral yields and downgrades. On the other hand, risk markets were lifted by speculation of additional stimulus from central banks and coordinated actions by G20 leaders. It's reported that G-20 leaders, who will meet in Mexico on Monday and Tuesday, were already " preparing for coordinated action to provide liquidity" if global financial markets worsen markedly after the Greek election." Indeed, BoE has taken the lead and announced credit-easing measures last week. ECB seemed to be opening doors for rate cut. While investors should be in deep worry of the Greece situation, the need for bailout for Spain and Italy, stocks jumped with Stoxx Europe 600 index rose nearly 1%and S&P 500 just had the first back-to-back weekly gain since April. Dollar did weakened with dollar index back below 81 level. It's weird that investors were worried and were buying at the same time. And it even feels a bit like investors were hoping for the worst outcome from Greece so that central banks and officials would then have enough drive to do something drastic. Full Report Here... | 
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