UK analyst predicts Yanis Varoufakis’s departure may help in Greek crisis talks but as the City will admit no one really knows what will occur next.
‘The Greek bloke’s resigned. He’s run rings round ‘em’.
Those words were how one City trader was overheard explaining the resignation of Greek finance minister Yanis Varoufakis – as he chatted on the phone in early trading – following the Greek referendum.
It represented what was a brief hum of excitement in the City as the markets opened on Monday morning – for the first time since the Hellenic Republic voted no. Like eurozone officials the Square Mile had been expecting that last week’s taster of capital controls would spook the country into a yes vote in the country’s austerity referendum and financial spread-betting firm IG Group last week priced a no vote as having only a 40% chance.
So what now? Monday morning’s initial dips in the value of the euro and the world’s stock markets have been swiftly reversed – the euro is now down less than 1% against the dollar – while the FTSE is off by even less – as investors quickly started to buy again in the hope of a deal.