European stock markets are rebounding slightly today after they, along with the US and Asian markets, took a big hit overnight following new fears about the Greek economic situation.
Standard & Poor’s graded Greek debt as “junk” Tuesday, as German officials spoke of the possibility of Greek debt holders not receiving full re-payment.
“We are looking very clearly at the chance of Greece defaulting,” Howard Wheeldon of BGC Partners stock firm told Fox News Wednesday.
And the chance of other European countries like Portugal following Greece down is becoming more real. “The contagion factor is enormous,” John Sitilides of Trilogy Advisors told Fox. “Portugal is very much in public play.”
While the IMF has agreed to a bail-out package for Greece, the European Union is still weighing its portion of the deal. “The EU is showing its huge exposure and weakness,” BGS’s Wheeldon told Fox.
Experts tell Fox News banks with exposure to Greek debt even in better-off countries like France and Germany could also be threatened.
And our own stock markets could see further effects.