Markets ‘to recover’ if Tsipras returned to power

Greek financial markets are likely to rebound strongly in the final quarter of the year despite their current malaise. Former Greek prime minister Alexis Tsipras last week resigned which paved the way for snap elections next month.

The ensuing uncertainty in the absence of any form of stable government has weighed on Greek financial markets with bonds being sold off and significant falls in the equity market.

Tsipras’s political gamble, while currently deepening uncertainty in Greek markets, will likely see the Syriza leader returned to power which should lead to a strong recovery in the latter part of the year, according to Merrion Stockbrokers chief economist Alan McQuaid.