Greece bailout un­cer­tainty weighs on mar­kets

The China Post - - MARKETS -

Global stock mar­kets were weighed down Fri­day by on­go­ing un­cer­tainty over the fu­ture of Greece’s bailout af­ter the In­ter­na­tional Mon­e­tary Fund de­cided to walk away from dis­cus­sions in Brussels, cit­ing a dis­tinct lack of progress.

In Europe, the UK’s FTSE 100 dropped 0.7 per­cent to 6,802, while Ger­many’s DAX fell 1 per­cent to 11,215. The CAC-40 in France was 1.2 per­cent lower at 4,914. Un­sur­pris­ingly Greek shares were the worst-per­form­ing in Europe, with the main Athens in­dex down 3 per­cent. U.S. stocks were poised for mod­est de­clines at the bell with Dow fu­tures and the broader S&P 500 fu­tures down 0.3 per­cent.

Fri­day’s de­clines fol­low the IMF’s move to pull its ne­go­tia­tors out of the talks in Brussels and send them back to Wash­ing­ton, D.C., say­ing there had been no progress and that ma­jor dif­fer­ences re­mained in key is­sues. The move con­trasted with re­cent op­ti­mism ex­pressed by the Greek side that some sort of deal will be cob­bled to­gether by the end of the month. Greece’s 240 bil­lion-euro (US$270 bil­lion) bailout ex­pires June 30, at which point the coun­try will lose ac­cess to the res­cue loans it des­per­ately needs to re­pay debts and avoid a de­fault that could force it out of the euro. It looks in­creas­ingly like next week’s meet­ing of eu­ro­zone fi­nance min­is­ters in Lux­em­bourg could prove de­ci­sive in seal­ing Greece’s fi­nan­cial fate.

“Some­thing like this was go­ing to have to hap­pen at some point,” said Craig Er­lam, se­nior mar­ket an­a­lyst at OANDA. “One side is go­ing to have to of­fer some se­ri­ous con­ces­sions if a deal is go­ing to be reached.”

Asian Stocks Fol­low US Gains,

Euro Hurt on IMF Walk­out

The euro re­treated in Asia Fri­day on con­cerns about Greece’s bailout re­form talks af­ter the IMF walked out, while Ja­panese stocks ended higher thanks to a pick-up in the dollar against the yen.

Re­gional in­vestors were given an­other pos­i­tive lead from Wall Street fol­low­ing a bet­ter- than- fore­cast U.S. re­tail sales re­port.

Tokyo climbed 0.12 per­cent, or 24.11 points, to 20,407.08, although the gains were capped by wor­ries about the Greece talks.

Hong Kong rose 1.39 per­cent, or 372.69 points, to close at 27,280.54 and Shang­hai added 0.87 per­cent, or 44.76 points, to 5,166.35.

But Syd­ney fell 0.20 per­cent, or 11.35 points, to 5,545.3 and Seoul was 0.22 per­cent lower, drop­ping 4.44 points to 2,052.17.

U.S. shares jumped for a sec­ond con­sec­u­tive day Thurs­day af­ter the U.S. Com­merce Depart­ment said re­tail sales in May rose 1.2 per­cent, bet­ter than the 1.1 per­cent gain fore­cast by an­a­lysts.

The fig­ures are the lat­est in a string of data show­ing the world’s num­ber one econ­omy is back on the road to re­cov­ery af­ter a wob­bly few months at the start of the year caused by a se­vere win­ter.

The Dow gained 0.22 per­cent, the S&P 500 added 0.17 per­cent and the Nas­daq rose 0.11 per­cent.

Gold fetched US$ 1,179.90 com­pared with US$1,179.55 late Thurs­day. In other mar­kets: — Welling­ton fell 0.20 per­cent, or 11.45 points, to 5,846.97.

— Bangkok slipped 0.43 per­cent, or 6.58 points, to 1,508.23.

— Sin­ga­pore closed up 0.18 per­cent, or 6.18 points, to 3,353.85.

— Jakarta ended up 0.14 per­cent, or 7.01 points, at 4,935.82.

— Kuala Lumpur was flat, slip­ping 0.39 points to 1,734.37.

— Mumbai rose 0.21 per­cent, or 54.32 points, to close at 26,425.30.

— Manila was closed for a public hol­i­day.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.