European stocks slide with all eyes on Greece
Europe’s main stock markets fell Tuesday as investors tracked the latest news flow on stalled Greek debt talks, while HSBC bank slid on revelations of a radical overhaul.
Germany’s DAX 30 index sank 1.27 percent to stand at 10,923 points in early afternoon deals and the CAC- 40 in France shed 0.58 percent to 4,829.30.
The UK’s benchmark FTSE 100 dipped 0.35 percent to 6,766.10 points compared with Monday’s close.
Shares in bank giant HSBC dived 1.07 percent to 612.90 pence in London, as investors also digested drastic job cuts aimed at saving up to US$ 5.0 billion in annual costs by late 2017.
Athens meanwhile remains locked in a standoff with the European Union over a deal to release 7.2 billion euros ( US$ 8.1 billion) of remaining bailout funds as the country faces huge debt repayments to the IMF at the end of the month.
Athens Submits New Plan to
EU- IMF Creditors
Greece submitted a promised reform plan to its EU- IMF creditors Tuesday, a day before Prime Minister Alexis Tsipras is due to discuss how to end Athens’s debt crisis with the French and German leaders, European sources said.
Creditors “are now in the process of studying” the list of “counter- proposals,” which arrived two days after European Commission chief Jean- Claude Juncker complained Tsipras had not fulfilled a pledge made at a meeting last week to send Brussels the plans, one source told AFP.
Istanbul Rebounds After
Meanwhile, Turkey’s markets were calmer Tuesday following a tumultuous first day of trading after President Recep Tayyip Erdogan’s Justice and Development Party ( AKP) lost its parliamentary majority in weekend elections, ushering in a new period of uncertainty.
Asian markets fell Tuesday, with Shanghai and Hong Kong hit by another weak batch of indicators, but the euro was supported by upbeat German trade data.
Asian Markets Sink but Euro
Wall Street provided a negative lead as last week’s strong jobs report fanned expectations that the Federal Reserve will increase borrowing rates soon.
Shanghai closed down 0.36 percent, or 18.35 points, at 5,113.53 and Hong Kong lost 1.20 percent, or 326.76 points, to 26,989.52.
Tokyo tumbled 1.76 percent, or 360.89 points, to end at 20,096.30 due partly to a pick-up in the yen, and Sydney dropped 0.49 percent, or 27.16 points, to 5,471.3.
Seoul was marginally lower, giving up 1.16 points to 2,064.03.
China’s National Bureau of Statistics said the consumer price index came in at 1.2 percent in May, down from April’s 1.5 percent.
The figure is the latest showing signs of weakness in the world’s second-biggest economy and reignites worries about the country slipping into a painful spiral of deflation, which could further drag on any recovery.
‘Posed a problem?’ White
House Walks Back
The greenback was dragged down in U.S. trade after media reports that U.S. President Barack Obama had told Group of Seven leaders in Germany that its recent strength “posed a problem.”
The White House quickly denied the remark.
In New York Monday the Dow lost 0.46 percent, the S&P 500 shed 0.65 percent and the Nasdaq fell 0.92 percent.
Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo, told Bloomberg News: “We still have concerns over U.S. monetary policy and Greece hanging over our heads.
“If the U. S. moves towards raising rates, bonds will be sold, and if that turns into a big move, there’ll also be consequences for stocks.”
In Hong Kong banking giant HSBC closed 0.41 percent lower after announcing up to 50,000 job cuts and cost savings of US$5 billion in the next two years.
Gold fetched US$ 1,181.70 compared with US$1,174.47 late Monday. In other markets: — Wellington fell 0.40 percent, or 23.70 points, to 5,862.15.
— Manila shed 2.16 percent, or 161.45 points, to7,323.44.
— Bangkok slid 1.06 percent, or 15.96 points, to 1,492.32
— Kuala Lumpur fell 0.60 percent, or 10.40 points, to 1,729.05.
— Singapore closed down 0.76 percent, or 25.20 points, at 3,295.13.
— Mumbai fell 0.16 percent, or 41.84 points, to end at 26,481.25.
— Jakarta ended down 2.30 percent, or 115.11 points, at 4,899.88.