A lightly traded ETF indexed to Greek stocks fell to a fresh low Tuesday on worries the troubled country will be forced to leave the Eurozone amid political uncertainty after voters rejected austerity measures.
The fund is down over 30% the past three months.
Global markets were unsettled Tuesday after Alexis Tsipras, leader of the leftist coalition in Greece, said he wants to reject the international bailout.
“European political risk remains center stage for financial markets,” said Citigroup analyst Adrian Cattley in a Bloomberg report. Greece’s election result “suggests no quick path to a new stable government and could raise probability of contagion risks.”
“The political uncertainty in Greece will remain a big issue for some time now,” said Jim Reid at Deutsche Bank in a CNNMoney report. “It’s also inevitable that there will be much debate about Greece’s future within the Eurozone.”
On Tuesday, the ASE Index, a benchmark of Greek stocks, sank to its lowest level since 1992. Greece’s market is down about 90% from the peak in 2007.
Global X FTSE Greece 20 ETF