London: European stocks sank yesterday with Athens plunging by over seven percent at one stage and Germany’s main index at a four-month low, after weekend talks between Greece and its creditors collapsed sparking fresh fears of a Greek default.
Greece’s benchmark Athex index ended the day down 4.68 percent at 738.25 points, with Greek banking shares especially hard hit.
In Europe’s main markets Frankfurt’s DAX 30 index slumped 1.89 percent to 10,984,97 points, sinking below the 11,000 mark for the first time since late February. London’s benchmark FTSE 100 index of top companies closed down 1.10 percent at 6,710.52 points, and in Paris the CAC 40 dropped 1.75 percent to 4,815.36 points compared with Friday’s close.
“The markets were awash with red... as investors continued to deal with the aftermath of the weekend’s most recent Greek-deal collapse,” said Spreadex analyst Connor Campbell. Kash Kamal, research analyst at Sucden Financial, added that “the threat of a Greek default and probability of a Greek exit from the euro became increasingly likely possibilities.”
In foreign exchange, the euro slid to $1.1248 from $1.1260 late on Friday in New York.
US stocks also fell Monday on worries about a potential Greek debt default. Around mid-day in New York, the Dow Jones Industrial Average was down 0.86 percent to 17,780.79 points. The broad-based S&P 500 slid 0.44 percent to 2,084.94 points, while the tech-rich Nasdaq Composite Index lost 0.57 percent to 5,022.38.
Most Asian stocks closed lower yesterday. Tokyo ended marginally lower, giving up 19.29 points to 20,387.79, while Shanghai sank 2 percent, or 103.36 points, to 5,062.99. Hong Kong gave up 1.53 percent, or 418.73 points, to close at 26,861.81. Sydney fell 0.12 percent, or 6.45 points, to 5,538.8 and Seoul lost 0.48 percent, or 9.85 points, to end at 2,042.32.
Adding to selling pressure in the US were expectations the Federal Reserve will raise interest rates before the end of the year. A series of upbeat data out of Washington lately has shown the world’s biggest economy is well on the road to recovery, giving the Fed the ammunition to raise rates from record lows as bank policymakers try to avoid a bubble appearing.
In other markets, Bangkok lost 0.42 percent, or 6.34 points, to close at 1,501.89. Singapore closed down 0.92 percent, or 30.72 points, to 3,323.13. Jakarta ended down 1.99 percent, or 98.02 points, at 4,837.79. Malaysia’s key stock index finished 0.70 percent, or 12.21 points lower, at 1,722.16.
Mumbai rose 0.61 percent, or 161.25 points, to end at 26,586.55. Aluminium miner Hindalco Industries fell 1.97 percent to Rs114.40, while Sun Pharmaceutical Industries rose 2.95 percent to Rs837.75. Taipei slipped 0.46 percent, or 42.45 points, to 9,259.48. Wellington fell 0.46 percent, or 27.00 points, to 5,819.97. Manila closed 0.63 percent lower, giving up 47.56 points to 7,456.16. Universal Robina fell 2.70 percent to 180 pesos while SM Prime Holdings slipped 2.88 percent to 18.90 pesos.
AFP
