Individual Nations Impacting Global Financial Markets

A week of financial instability had everyone on edge as Europe dealt with Greece and China battled in the stock markets.

Greek Crisis

After continued strife and instability Greece went to the polls and voted NO, rejecting international creditors’ tough bailout terms sending stock markets around the globe spiraling downwards with Australia losing $30billion. At a meeting following the referendum Greece arrived without a new debt proposal causing stocks to tumble for a second day. European leaders gave Greece 48 hours strike a new bailout deal with its Eurozone creditors or it threatened that all 28 national EU leaders would meet on Sunday to discuss how to contain the crisis. Greece requested a 3 year bailout but Germany was hesitant wanting a full list of reforms.

Below is an interesting breakdown of the European Debt Crisis.

Chinese Stock Market

After continued stock market volatility in China hedge fund managers pledged to invest $19billion to help prevent further damage, however, the Chinese stock market took a nose dive during the week with over 700 companies asking for their shares to be suspended. China took measures to prevent further chaos by stopping major share holders from selling for six months. There seemed to be a positive uptick on Friday after the measures were introduced however no one is sure how long it will last.