An ETF that allows investors to trade Greece’s stock market should see above-average volume this week as markets speculate on the outcome of a crucial June 17 election.
Global X FTSE Greece 20 ETF (NYSEArca: GREK) was down 2.5% on Monday as investors were unimpressed by the latest European bailout, this time of Spain’s troubled banking system.
Greek voters are returning to the polls after the inconclusive election in May. If leftist party Syriza prevails, investors are concerned Greece may end up leaving the euro.
Greece continues to spiral despite multiple bailouts as the country wrestles with an unemployment rate over 20%, a shrinking economy and austerity measures.
“Given the gravity of the European problem, not just Spain, people are kind of waking up to the fact that this is something but not enough,” said James Dailey, portfolio manager of TEAM Financial Asset Management, in a Reuters article Monday.
U.S. stocks reversed into negative territory Monday after strong premarket gains as enthusiasm for Spain’s bailout request waned.