Tuesday, December 30, 2014

Risk of Greek fallout hits European stocks

Financial Times
December 30, 2014

Tuesday 21:00 GMT. Global equities lost momentum on Tuesday, with European equities dropping as the snap election called in Greece drew in further casualties.

Shares on Wall Street also eased but benchmark indices still remain near record highs. The S&P 500 closed 0.5 per cent lower at 2,080.35 points, while the Dow Jones Industrial Average ended the session 0.3 per cent weaker.

The declines were steeper in Europe, where the international FTSE Eurofirst 300 ended the session down 1 per cent at 1,362.85, its weakest close for four sessions. The Xetra Dax 30 in Frankfurt fell 1.2 per cent, while the Paris CAC 40 lost 1.7 per cent and London’s FTSE 100 fell 1.3 per cent to 6,547.

The Athens General index fell a further 0.5 per cent to 816.15, heading back toward its weak point for the year of 756.8 after adding to Monday’s 12 per cent plunge.

The lingering uncertainty was caused by the potential rise to power of the leftwing Syriza party, which intends to renegotiate Greece’s international bailout. After heading sharply higher on Monday Greece’s 10-year sovereign borrowing costs eased by 6 basis points to 9.54 per cent.


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