World stocks slip on Greek im­passe with cred­i­tors

The China Post - - WORLD BUSINESS -

Greece’s de­ci­sion to bun­dle to­gether its up­com­ing re­pay­ments to the In­ter­na­tional Mon­e­tary Fund roiled fi­nan­cial mar­kets Fri­day as in­vestors fret­ted over the pos­si­bil­ity of a Greek debt de­fault and the coun­try’s exit from the euro. U.S. jobs fig­ures later will pro­vide in­vestors with a dis­trac­tion from the mount­ing un­cer­tainty over Greece’s fi­nan­cial fu­ture.

In Europe, Greek shares led the way lower with the bench­mark Athens in­dex down 5 per­cent. Else­where, France’s CAC- 40 slid 1.5 per­cent to 4,912 while Ger­many’s DAX fell 1.4 per­cent to 11,180. The United King­dom’s FTSE 100 fell 0.9 per­cent to 6,793. U.S. stocks were poised for a lower open­ing with Dow fu­tures and the broader S&P 500 fu­tures down 0.5 per­cent.

The de­ci­sion Thurs­day by the Greek gov­ern­ment to bun­dle to­gether its four pay­ments to­tal­ing 1.6 bil­lion eu­ros (US$1.8 bil­lion) due to the In­ter­na­tional Mon­e­tary Fund this month into one on June 30 raised fears across mar­kets that the coun­try’s fi­nan­cial po­si­tion is even worse thought, threat­en­ing its place in the euro. It’s the first time a de­vel­oped econ­omy has taken the op­tion of bundling pay­ments to­gether — an emer­gency ma­neu­ver that’s al­lowed by the IMF but taken up last by Zam­bia in the 1980s. Prime Min­is­ter Alexis Tsipras is sched­uled to ad­dress an emer­gency ses­sion of par­lia­ment Fri­day as dis­con­tent rises within his party.

“Last night’s sud­den change of mind has raised the stakes even fur­ther as this high stakes game of Jenga goes on be­tween Greece and its cred­i­tors,” said Michael Hew­son, chief mar­ket an­a­lyst at CMC Mar­kets. “One false move from one side or the other, and the whole frag­ile ed­i­fice could well come tum­bling down.”

Though clearly fo­cus­ing on the de­vel­op­ments sur­round­ing Greece, in­vestors have key U.S. data to di­gest be­fore Wall Street opens for busi­ness. May’s non­farm pay­rolls data could well set the mar­ket tone for a while as in­vestors as­sess when the Fed­eral Re­serve will start rais­ing in­ter­est rates. Econ­o­mists pre­dict that em­ploy­ers added 227,500 jobs in May and the un­em­ploy­ment rate will hold steady at 5.4 per­cent. “Hav­ing seen the pre­vi­ous three sets of fig­ures be­ing re­vised lower, and the slightly cooler eco­nomic data re­leases the U.S. has had, ex­pec­ta­tions could be for­given for drop­ping a lit­tle,” said Alas­tair McCaig, mar­ket an­a­lyst at IG.

Tokyo slipped 0.13 per­cent, or 27.29 points, to close at 20,460.90, Syd­ney shed 0.11 per­cent, or 5.80 points, to 5,498.50 — a fifth­straight loss — and Seoul was down 0.23 per­cent, or 4.76 points, at 2,068.10.

Hong Kong tum­bled 1.06 per­cent, or 291.73 points, to 27,260.16 but Shang­hai rose 1.54 per­cent, or 75.99 points to 5,023.10 — above 5,000 points for the first time since Jan­uary 2008.

Gold fetched US$ 1,176.56 com­pared with US$1,183.30 late Thurs­day. In other mar­kets: — Welling­ton was marginally higher, adding 2.46 points to 5,867.90.

— Manila closed 0.36 per­cent, or 26.95 points, lower at 7,526.70.

Uni­ver­sal Robina sank 3.26 per­cent to 187 pe­sos, SM Prime Hold­ings was down 0.51 per­cent at 19.40 pe­sos and Ayala Land fell 1.02 per­cent to 38.80 pe­sos.

— Bangkok rose 1.10 per­cent, or 16.47 points, to 1,507.37.

Siam Ce­ment added 2.31 per­ent to 532.00 baht, while Air­ports of Thai­land gained 1.65 per­cent to 308.00 baht.

— Sin­ga­pore fell 0.34 per­cent, or 11.33 points, to 3,333.67.

United Over­seas Bank fell 0.04 per­cent to SG$22.79 while real es­tate de­vel­oper Cap­i­taland de­clined 0.58 per­cent to SG$3.41.

— Jakarta ended up 0.09 per­cent, or 4.75 points, at 5,100.57.

In­done­sia- based oil com­pany PT AKR Cor­porindo Tbk gained 2.70 per­cent to 5,700 ru­piah, while con­crete com­pany PT Wi­jaya Karya Be­ton Tbk fell 2.28 per­cent to 1,070 ru­piah.

— Kuala Lumpur rose 0.22 per­cent, or 3.85 points, to 1,745.33.

Bri­tish Amer­i­can Tobacco Malaysia gained 3.28 per­cent to 63.00 ring­git, while Felda Global Ven­tures Hold­ings slid 2.04 per­cent to end at 1.92 ring­git.

— Mumbai fell 0.17 per­cent, or 44.93 points, to end at 26,768.49.

ICICI Bank lost 2.18 per­cent to end at 284.50 ru­pees, while Coal In­dia rose 4.44 per­cent to 405.60 ru­pees.

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