Euro­pean stocks slide with all eyes on Greece

The China Post - - BUSINESS INDEX & -

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

Tu­mul­tuous Mon­day

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

Holds Up

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.

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