Nov. 10 (Bloomberg) -- Politics are dominating financial
markets. Day after day, prices react to news about what
governments around the world have done or might do.
The markets were jubilant two weeks ago when European
politicians announced a deal cutting Greece’s debt in half. U.S.
stocks soared 3.4 percent on Oct. 27, while French and German
stocks gained more than 5 percent. Early last week, equities
gave back those gains when Greece’s prime minister, George
Papandreou, announced his intention to hold a referendum on the
bailout. When other Greek politicians voiced their opposition to
that initiative, markets rejoiced again.