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| European markets mixed after Greek election result | European markets mixed after Greek election result |
| (40 minutes later) | |
| European stock markets are mixed in morning trading as investors react to the victory of pro-bailout parties in Greece's elections on Sunday. | |
| New Democracy, which got the most votes, has backed Greece's two bailouts. The result raises hopes that Greece will remain in the euro. | New Democracy, which got the most votes, has backed Greece's two bailouts. The result raises hopes that Greece will remain in the euro. |
| France's Cac was up 0.2% and Germany's Dax was 0.8% higher. Both had earlier risen 1%. The UK's FTSE was down 0.2%. | |
| Banking shares were initially flat before falling. | Banking shares were initially flat before falling. |
| In Germany, Commerzbank was down 1.7%, while Deutsche Bank had given up a rise of 0.8%. France's Societe Generale was 0.6% lower, while the UK's Lloyds had falllen 2.7%. | In Germany, Commerzbank was down 1.7%, while Deutsche Bank had given up a rise of 0.8%. France's Societe Generale was 0.6% lower, while the UK's Lloyds had falllen 2.7%. |
| Asian shares had earlier posted strong gains, with Japan's Nikkei 225 index and South Korea's Kospi both closing up 1.8%, while Australia's ASX 200 added 1.9%. | Asian shares had earlier posted strong gains, with Japan's Nikkei 225 index and South Korea's Kospi both closing up 1.8%, while Australia's ASX 200 added 1.9%. |
| Antonis Samaras, the leader of the New Democracy party, said on Sunday that "the Greek people voted today to stay on the European course and remain in the eurozone". | Antonis Samaras, the leader of the New Democracy party, said on Sunday that "the Greek people voted today to stay on the European course and remain in the eurozone". |
| "There will be no more adventures. Greece's place in Europe will not be put in doubt." | "There will be no more adventures. Greece's place in Europe will not be put in doubt." |
| Yield rise | |
| With shares both up and down on Monday, there was also a mixed picture among the wider financial markets. | With shares both up and down on Monday, there was also a mixed picture among the wider financial markets. |
| On the one hand, the euro was up almost 1% against the US dollar, hitting a one-month-high of $1.2748. | On the one hand, the euro was up almost 1% against the US dollar, hitting a one-month-high of $1.2748. |
| The price of oil also jumped on hopes that consumer demand may pick up should stability return to the eurozone. Brent crude rose 1.5% to $99.11 per barrel, while US light crude rose more than 1% to $84.97 per barrel. | The price of oil also jumped on hopes that consumer demand may pick up should stability return to the eurozone. Brent crude rose 1.5% to $99.11 per barrel, while US light crude rose more than 1% to $84.97 per barrel. |
| However, the yield on Spanish bonds remained volatile. The eurozone country next most at risk of potentially needing an international bailout, the yield on Spanish 10-year bonds had initially fallen as low as 6.767%, before then rising to 7.061%. | However, the yield on Spanish bonds remained volatile. The eurozone country next most at risk of potentially needing an international bailout, the yield on Spanish 10-year bonds had initially fallen as low as 6.767%, before then rising to 7.061%. |
| Italy's 10-year bond yield also rose, up to 6.08% after earlier falling to 5.847%. | |
| 'Too euphoric' | |
| The reaction among analysts was also mixed. | The reaction among analysts was also mixed. |
| Masayuki Doshida, a senior market analyst at Rakuten Securities, said the victory of Greece's New Democracy party had allayed eurozone fears for now. | Masayuki Doshida, a senior market analyst at Rakuten Securities, said the victory of Greece's New Democracy party had allayed eurozone fears for now. |
| "There'll be a definite sense of relief spreading around today," said Masayuki Doshida, she said. | "There'll be a definite sense of relief spreading around today," said Masayuki Doshida, she said. |
| Fellow analyst, David Lennox of Fat Prophets, told the BBC that the worst of the Greek crisis could now be over. | Fellow analyst, David Lennox of Fat Prophets, told the BBC that the worst of the Greek crisis could now be over. |
| "We think that early punters are already taking the view that a floor has been put under the crisis for now," he said. | "We think that early punters are already taking the view that a floor has been put under the crisis for now," he said. |
| However, Adrian Slack, head of equities at Bastion Capital, said the initial reaction to the Greek election result was "too euphoric". | |
| He added: "Fundamentally, the problems [in Greece and the eurozone] haven't changed." | |
| Peter Schiff, of the brokerage Euro Pacific Capital, added: "How long is it going to take for people to worry about Spain again?" | |
| Spain's borrowing costs have been hitting euro-era record levels, indicating that lenders were concerned about Madrid's ability to repay its debts. | |
| Last week, the ratings agency Moody's cut Spain's credit rating to one notch above "junk". | |
| Contagion concerns | |
| The elections in Greece were being watched closely, not just by eurozone leaders but also investors all across the globe. | The elections in Greece were being watched closely, not just by eurozone leaders but also investors all across the globe. |
| Greece, which is suffering from a sovereign debt crisis, has received two bailouts in the past two years. | Greece, which is suffering from a sovereign debt crisis, has received two bailouts in the past two years. |
| It was given an initial package worth 110bn euros (£89bn; $138bn) in 2010, followed by another one agreed last year worth 130bn euros. | It was given an initial package worth 110bn euros (£89bn; $138bn) in 2010, followed by another one agreed last year worth 130bn euros. |
| However, the EU and IMF have attached tough austerity measures, including state spending cuts, as pre-conditions to those packages. | However, the EU and IMF have attached tough austerity measures, including state spending cuts, as pre-conditions to those packages. |
| There have been various demonstrations against these cuts in Greece and the Syriza party had said that it would renegotiate the conditions if it came to power. | There have been various demonstrations against these cuts in Greece and the Syriza party had said that it would renegotiate the conditions if it came to power. |
| It had led to fears that if eurozone leaders and Athens did not agree on the existing terms, Greece may be forced to leave the eurozone. | It had led to fears that if eurozone leaders and Athens did not agree on the existing terms, Greece may be forced to leave the eurozone. |
| There were concerns that such a move may spread contagion to other eurozone countries and result in turmoil in the global economy. | There were concerns that such a move may spread contagion to other eurozone countries and result in turmoil in the global economy. |