Spain worries may lead to sell off later this week: Priest

Mark Priest, senior. trader, ETX Capital, says that this week, the markets finally received 100 billion euro bailout for the Spanish banks. This news has been taken very positively by the markets.
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Jun 11, 2012, 08.39 PM | Source: CNBC-TV18

Spain worries may lead to sell off later this week: Priest

Mark Priest, senior. trader, ETX Capital, says that this week, the markets finally received 100 billion euro bailout for the Spanish banks. This news has been taken very positively by the markets.

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Spain worries may lead to sell off later this week: Priest

Mark Priest, senior. trader, ETX Capital, says that this week, the markets finally received 100 billion euro bailout for the Spanish banks. This news has been taken very positively by the markets.

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Mark Priest, Senior Trader, ETX Capital
Mark Priest, senior trader, ETX Capital, says that this week, the markets finally received 100 billion euro bailout for the Spanish banks. This news has been taken very positively by the markets. We might see some sell off later in the week as there are still underlying worries about Spain and other European countries.   

He also says that there are still underlying worries about Greek economy. The underlying issue is, whether the party can sort out the problems whilst remaining in the euro. Any rally will be tempered by concerns about the long term state of their economy.

Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.

Q: How positive is this news of a request for bailout from Spain and the Troika more or less agreeing to it. Does this put a floor to the markets or will it in a day or two create fresh doubts?

A: We have been waiting for some reaction to the crisis from various governments and central banks. This week, we finally received 100 billion euro bailout for the Spanish banks. This news has been taken very positively by the markets, as we can now see something directly coming into the market. That's why we have seen a sharp rise today.
We might see some sell off later in the week as there are still underlying worries about Spain and other European countries.   

Q: The market has positively reacted to Spain news. Do you think there is a feeling that Greece might not turnout to be a very adverse event?

A: It's all about confidence and reactions to the crisis that we have seen over the last few months. All eyes are on Greece elections and results as it is slightly bigger economy. If event in Greece fails then that will have repercussions globally.

Q: How much leg will you give this rally?

A: This rally may not last for more than couple of days. There are still serious worries about the state of European economy. Nervousness will still come in. However, if Greece elections go well, it will be good for the euro and Greece and the rally will continue.

Q: You don't see too much of a sell off this week as there would be some open positions ahead of the Greek election?

A: People will make hay this week while the stocks are rallying and towards the end of the week people will tighten up their books if there is a negative outcome on the elections on Sunday.

Q: If Greece manages to get a new democracy party then do you think this rally will extend itself and could go up very sharply or do you think some of the positives are already priced in?

A: All the positives are priced in. There are still underlying worries about the state of the Greek economy. The underlying issue is, whether the party can sort out the problems whilst remaining in the euro. Any rally will be tempered by concerns about the long term state of their economy.

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Spain worries may lead to sell off later this week: Priest

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