At the dawn of 2016 the world markets are upset.

Stockbrokers and economists everywhere are faced with hard-to-perceive political risks and are resorting to mass sales.

There are major concerns over the progress of the Chinese economy, especially the weakness of such a large country to carry out its production restructuring, so that it may carry on to grow with the same high rates in previous years.

Already the doubts over Beijing’s abilities have had an effect on the Chinese stock market since the start of the year, which has suffered significant losses since December and is being described as a huge bubble that is about to burst.

So far the stock market losses are over 3.3 billion dollars and the Chinese stock market has recently shut down and ceased operations twice in order to limit losses to 7%.

On Thursday, when the news of the North Korean H-bomb test broke, the stock market insecurity spread throughout the world and affected the troubled Greek stock market.

Previously the focus was on the front in the Middle East, where Islamic terrorism and the refugee crisis are constantly sending waves of insecurity towards Europe.

European cohesion is further deteriorating due to the deep involvement in the Middle East and North Africa, with European integration itself being doubted.

There is even more concern after the clashes between Ankara with Moscow and Riyadh with Teheran.

The recent attacks in Paris and the sexual assaults in German cities have come to shaken, to say the least, the plans of further developing European integration.

As a result, the debate in Europe has shifted from federalization to national protectionism.

The Schengen agreement, which is an essential pillar of the integration plan, is cast in doubt and being disputed, affecting the further transformation of Europe.

All of the aforementioned constitute the so-called political threat, which the international markets are not in the position to determine accurately or assess adequately.

That is why they tend to sell off their stocks and shares, which is perpetuating the global climate of uncertainty and instability.

The question being asked is whether they will prevail and become the basis for a recovery from the financial crisis similar to the one in 2008, as predicted by George Soros or whether there will any initiatives for appeasement and control.

It is also uncertain how Greece will be affected, in spite of the unprecedented degree of consolidation to which it has committed.

Nobody can give a safe answer.

The only certainty is that the insecurity is constantly fed by undesirable and unforeseen developments.

As it would seem, it will remain a deterrent for at least the first few months in 2016, with all the entails…

Antonis Karakousis