Spreading of Europe's bond market problems 'a key concern'

The uncertainty currently surrounding the European bond markets and the possibility they could spread to the UK is ’one of the key concerns’ at present, according to one expert.

Those using their private wealth to trade on the financial markets will have seen stocks fall over recent days on the back of renewed anxiety regarding the fiscal situation in Greece and Andrew Goodwin of Oxford Economist said this is ’the big issue’ affecting trading at the moment.

He warned the UK’s high deficit means it will probably become a target for devaluation by ratings agencies ’at some point’ and also noted markets are preparing for the possibility of a strong parliament being formed following the general election today (May 6th).

’I don’t think a hung parliament would be a surprise to anybody now given the way the opinion polls have been going over the last three or four weeks,’ he remarked, adding the worst-case scenario will be one where no party is able to govern the country effectively.

A ComRes poll conducted for ITV News and the Independent on Tuesday pointed to the Conservatives winning 37 per cent of the vote, which would not give them enough seats for a majority.ADNFCR-2318-ID-19761778-ADNFCR