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11-09-2010, 10:41 AM #1
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Greece dodges bullet, sovereign jitters remain: Ireland, Por
Nov. 8, 2010, 9:58 a.m. EST
Greece dodges bullet, but sovereign jitters remain
Ireland, Portugal see renewed pressure
By William L. Watts, MarketWatch
LONDON (MarketWatch) — A strong showing by Greece’s ruling party in local elections temporarily calmed European bond markets Monday, but Irish yields were soon on the rise again on escalating worries over the fate of Ireland’s banking sector.
Greek Prime Minister George Papandreou late Sunday said the local election results, which saw his PASOK party holding its ground, amounted to an endorsement of the government’s controversial deficit cuts. Papandreou last week had said that a setback for his party in the local contests could lead him to dissolve parliament and call a snap general election.
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