Greek stocks isolated from rest of Europe
The plunge in Greek equities that erased $10 billion in market value last week is stirring up little concern among European investors. The country’s equities have tumbled 15 percent since the Athens Stock Exchange reopened last Monday, with banks hovering near record lows. In contrast, the Stoxx Europe 600 Index rose 0.9 percent, buoyed by what JPMorgan Chase Co said is the best earnings season in at least six years. “Greek markets are getting more and more isolated from the rest of Europe,” said Ben Kumar, a fund manager who helps oversee about $14 billion at Seven Investment Management in London. “They are really tiny now. With earnings season in full swing, European stock investors have other things to consider, and Greece is a whole separate story.” While concern that Greece’s debt crisis could derail the region’s recovery and break the euro dragged European shares down in recent months, calm has returned to the Stoxx 600 as investors focus on earnings reports. A measure of volatility, which spiked to a three-year high in June, fell 43 percent through last week.