European stocks fall for a second day ahead of crucial weekend
Published 04/07/2015 | 02:30
European stocks fell for a second day and German bonds gained as Greece called for a write-down on its debt and investors braced for a referendum this weekend. The yen and the Swiss franc strengthened.
The Stoxx Europe 600 Index decreased 0.5pc at the close of trading, while the yield on Germany's 10-year bund dropped five basis points to 0.79pc at 12.10pm in New York.
By the close in Dublin, the ISEQ Overall Index fell 0.2pc of 12.20 points to end the trading week at 6,233.59. The leaders on the Dublin market included insurance group FBD, which closed up 1.9pc to €9.25, while bookmakers Paddy Power rose 1.1pc to €79.42.
On the other side of the board, the laggards included drinks group C&C, which fell 2.8pc to €3.34, while insulation group Kingspan dropped 1.1pc to €21.80.
Stocks across Europe extended declines in a week where more than $1.5 trillion was erased from the value of global equities after Greek Prime Minister Alexis Tsipras short-circuited bailout talks by calling a referendum.
Mr Tsipras said yesterday that a 30pc so-called haircut and a 20-year grace period was the only way the country's debt could become sustainable.
"Investors clearly want to sell what they can before the weekend," said Ramiro Loureiro, a Lisbon-based market analyst at Banco Comercial Portugues' Millennium unit.
"The small difference between the 'yes' and the 'no' vote in Greece has generated so much uncertainty that, when you throw in thin trading volumes, you're bound to get more marked losses near the close of trading."
A poll commissioned by Bloomberg News showed 43pc intend to vote "no" to reject the austerity demanded by creditors in exchange for financial aid; 42.5pc back a "yes" to accept the conditions, the survey of 1,042 people found.