Monday 26 September 2016

European stocks fall again in Greek fears

Bloomberg and Colm Kelpie

Published 01/07/2015 | 02:30

An employee of a foreign exchange trading company stands in front of monitors displaying the current exchange rate of the Japanese yen against the Euro in Tokyo. Photo: Reuters
An employee of a foreign exchange trading company stands in front of monitors displaying the current exchange rate of the Japanese yen against the Euro in Tokyo. Photo: Reuters

European stocks fell for a second day yesterday as investors weighed Greece's ability to meet a payment amid an expiry of its bailout package.

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The Stoxx Europe 600 Index dropped 1.3pc to 381.31 at the close of trading, taking its second-quarter loss to 4pc. Greece is set to withhold a $1.7bn payment due to the International Monetary Fund by yesterday, when its Eurozone aid package also ran out.

Equities tumbled on Monday after Greece called for a July 5 referendum on creditor demands, shut its banks and imposed capital controls.

By the close in Dublin, the ISEQ Overall Index was down 0.71pc or 44.10 points to end the trading session at 6,165.04.

The leaders on the Dublin market included Dalata Hotel group, which closed up 1.4pc to €3.60, while food group Glanbia increased 0.3pc to €17.63.

On the other side of the board, the laggards included Ryanair, which closed down 1.9pc to €11.82, while bookmakers Paddy Power fell 1.5pc to €76.87.

European stocks earlier pared a drop of as much as 1.4pc yesterday after an official said European Commission President Jean-Claude Juncker set out details to Greek Prime Minister Alexis Tsipras on how his country can reach a deal. Shares then almost erased declines after German Finance Minister Wolfgang Schauble was said to tell politicians Greece would stay in the euro for the time being if voters reject austerity.

"Who would have thought that Greece would even get to this stage?" said Ben Kumar, at Seven Investment Management in London.

"Today should have been about putting the finishing touches on photos of Tsipras and creditors signing a deal. Instead, we have to wait out this week with more uncertainty. I miss the first quarter when stock moves made fundamental sense."

Irish Independent

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