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Global markets continued to fall on Tuesday. Risk-off was the name of the game as concerns over Greece after this weekend's elections continued to rock equities worldwide.

[caption id="attachment_59539" align="alignright" width="300" caption="Time to get ready for some cheap Greek holidays?"] Image courtesy Wolfgang Staudt: http://www.everystockphoto.com/photographer.php?photographer_id=41618 [/caption]

Vivianne Rodrigues discusses Greece-related market performance in the Financial Times' beyondbrics blog

Equities fell sharply on Tuesday as investors continued to ponder the ramifications of Greece's ( GREK , quote ) recent elections. With anti-bailout parties from both the left and the right winning a disproportionate number of votes compared to historical norms, fears abound that progress will not be made in the Mediterranean nation . Many markets were at their lowest levels in two months on the back of these concerns. Greek stocks fell 4%, sending the Athens bourse to its lowest point in almost twenty years. Unsurprisingly, the euro ( FXE , quote ) slipped as well.

John Detrixhe and Erik Schatzker relay FX Concept's John Taylor's opinion on Greece for Bloomberg

FX Concept's John Taylor, in an interview with Bloomberg, claimed that Greece will end up leaving the European Monetary Union as the result of the elections held this weekend. Citing this summer as a likely departure date, Taylor indicates that Greece will be out of money by June and with the fringe candidates' new mandate, it is highly unlikely that they will pursue a deal with the IMF. He also posited that a Greek exit is increasingly being seen as a palatable option throughout the rest of Europe. As long as this catalyzes other European nations to rally around the Spanish and Portuguese camps to ensure they remain solvent, a Greek exit doesn't spell doom for the euro.

The Economist discusses Italy's municipal elections in its Newsbook blog

Overshadowed by national elections elsewhere in Europe, Italy ( EWI , quote ) held local elections this weekend. Given the mood in southern Europe, it comes as no surprise that the Italians expressed their dismay at the polls. The abstention rate was significantly higher than it was in 2007. Those that did show up were more inclined than usual to vote for peripheral candidates, including a party started by a political satirist called the 5 Star Movement. Evidently, the politics of discontent is not confined to Greece; investors must be keenly aware that political degradation elsewhere in the periphery could adversely effect the euro going forward.

Jan Cienski talks Polish central bank policy in the Financial Times' beyondbrics blog

The Polish central bank will hold its month meeting this week, and unlike its previous dozen meetings where it opted not to change its benchmark rate of 4.5%, there are whispers that a rate change is in order. Unlike euro zone countries, Poland ( PLND , quote ) continues to face "stubbornly high inflation." Combined with a dragging zloty, the Polish central bank may opt to hike interest rates in order to prevent inflation from climbing even higher. However, a rate hike is no panacea: with growth expecting to slump to 2.5% this year and myriad problems stemming from the rest of Europe, an increase in interest rates could hinder the Polish economy going forward.

Kenneth Rapoza discusses the difficulties faced by airlines in India in the BRIC Breaker blog in Forbes

Multiple airlines in India are reeling this week after labor disputes have materialized. 10 Air India pilots have been fired for striking in an attempt to receive higher pay, which resulted in 160 pilots calling in sick. Many long-haul flights were grounded. As well, pilots for Kingfisher Airlines are threatening to strike unless they receive long overdue pay. Pilot insubordination will only complicate matters further for the struggling Indian private carrier . With the exception of IndiGo, no Indian airline is profitable; for the industry to survive, government bureaucracy must be removed (admittedly wishful thinking) and consolidation is in order. Until then, expect these carriers to continue to struggle.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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