European stocks extend four month low
Published 08/07/2015 | 02:30
European stocks extended a four-month low yesterday, as Greece attempted to secure a rescue and stay in the euro.
The Stoxx Europe 600 Index lost 1.6 percent to 372.74 at the close of trading, reversing gains of as much as 0.4pc. Italian shares fell the most among western-European markets,with the FTSE MIB Index dropping 3pc after entering a correction on Monday. Portugal's PSI 20 Index slid 2.2pc.
By the close in Dublin, the ISEQ Overall Index was down 0.91pc or 55.84 points to end the trading day at 6,084.13.
The leaders on the Dublin market included Aer Lingus, which closed up 1.3pc to €2.43, while packaging giant Smurfit Kappa increased 0.6pc to €25.38. On the other side of the board, the laggards included insulation group Kingspan, which fell 1.5pc to €21.13, while bookmakers Paddy Power was down 3pc to €77.41.
"Week by week, we're seeing markets enter corrections as Greece steps closer to the edge," said Alessandro Bee, a strategist at Bank J Safra Sarasin.
"We have moments of panic and then take a few days to digest things. I think that will continue as long as the Greek issue drags on."
The Stoxx 600 slid on Monday after Greeks voted against austerity measures in a referendum. The gauge has tumbled 9.98pc from its April record. Greece will put its economic proposals in writing, in a first step toward restarting aid talks, Dutch Finance Minister Jeroen Dijsselbloem said yesterday.
Eurozone leaders gathered at a summit after markets closed yesterday, while the region's finance ministers will discuss Greece's request on a call today.
The crisis is hurting stocks that had basked in the glow of the European Central Bank's stimulus programme in the first quarter.
Half of the 18 western-European markets fell 10pc or more from their 2015 highs through Monday.