Have Greek Elections Impacted the Resilience of Global Finance?


Blog written on February 3-rd, 2015.

After the anti-bailout party has won the elections in Greece, global stock indices have edged up and the Euro has rebounded. The reaction of the markets appears to be, after much trepidation, mild, almost nonexistent. Has the Syriza-effect been compensated by the ECB’s money-printing programme? It is too early to say. This blog provides a brief picture of the resilience of the global financial system just a few days after these key elections for Greece and for the EU.

First of all, the evolution of the resilience of global finance. This is reflected by the Global Financial Resilience Index (GFRI), depicted below.



After a significant drop in resilience to 50%, and which has lasted for two weeks, and which may have reflected the anticipation of the Greek elections, the system is regaining resilience, climbing to over 65%. Today, a week after the elections in Greece the GFRI is at 66%.

In terms of major market indices the situation is as follows (the GFCI is the mentioned global financial system meta-index):


In terms of market sectors, the situation is, on average, slightly better:



We will be tracking the above indices and markets and reporting periodically the corresponding values of resilience. This will give a better idea of the dynamics of the response of global finance not only to the situation in Greece but also to other geopolitical events.






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