Any ‘ Greek’ market relief given Friday morning quickly dissolved during the last trading day and now weekend headlines have alleviated investors nervousness again. Rinse and repeat . Firstly and most notably, any package rests with a ‘vote of confidence’ of the PM this week in Greece and that is the overwhelming moving piece (Gov’t collapse or not?). This is a volatile situation for the market and is all that matters to start week. Final vote looks to be Tuesday and market will act upon outcome.
Any hints of bottoming, possible signs of capitulation seen last week is irrelevant until there is clarity on the Greek gov’t. To put this ‘vote of confidence’ into perspective, recall the day of the TARP vote and the volatile reactions.