Greek Bank shares leap ahead of important elections

8:00 AM ahead, elections, Greek, important, Shares No Comments

U.S. traded shares of the National Bank of Greece (NBG) is 7% in trading Friday, just a few days before an election of the country which for the Greek economy and ultimately the global financial system could have a huge impact.

The Greek parliamentary elections Sunday are displayed as a referendum for whether Greece as part of a plan to rescue the country from an enormous debt burden will accept austerity measures imposed or whether it will reject thrift and probably leave the euro zone.

According to the Greek law, not polls for weeks before an election can be published which means that the result of the vote is difficult to handicap. So the question is: why traders make bets before as a mysterious and potentially calamitous event are?

The movement in the stock could indicate that market participants think that the Greek people is a Government to choose which supports Greece bailout and strict agreements with other countries in the euro zone (something that probably the companies in the euro area would keep).