Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Ebola virus : Liberia shuts most border points

Read more

MEDIAWATCH

"What would you do?"

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine (part 2)

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine

Read more

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

#TECH 24

Internet of Things

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

  • Israel warns of ‘prolonged’ campaign in Gaza

    Read more

  • In pictures: From Gaza to Mosul, bittersweet end of Ramadan for Muslims

    Read more

  • France offers asylum to Iraqi Christians

    Read more

  • Moroccan police arrest French al-Qaeda recruiter

    Read more

  • Russia ordered to pay Yukos shareholders over $50bn in damages

    Read more

  • French mayor files complaint against US father who risked kids’ lives on Mont Blanc

    Read more

  • French footballer Griezmann headed to Atletico Madrid

    Read more

  • Luc Besson’s sci-fi thriller ‘Lucy’ tops US box office

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • Thousands gather in Marseille in support of Israel

    Read more

  • As France’s Carrefour pulls out, what next for India’s retail market?

    Read more

  • Liberia tightens border controls to curb Ebola outbreak

    Read more

  • The centenary of Austria-Hungary’s calamitous last hurrah

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

Business

Concerns over Greece drive European stocks down

Text by News Wires

Latest update : 2011-09-19

European markets began the week in retreat, with France’s CAC-40 falling 3 percent and Germany’s Dax closing down 2.8 percent, as international investors worried Greece would fail to take the steps necessary to secure more bailout cash.

AP - Stocks took a hammering Monday as Greece struggled to convince international creditors that it can meet its debt obligations in return for more bailout cash to avoid running out of funds as soon as next month.

Even though Prime Minister George Papandreou canceled a trip to the United States and the Greek cabinet came up with fresh austerity measures over the weekend, investors remain concerned that Greece will not get its hands on the €8 billion ($11 billion) due from last year’s €110 billion ($150 billion) bailout.

On Friday, eurozone finance ministers in Poland decided to delay authorizing the payout to Greece until early October. At risk is not only the installment from the 2010 rescue package but also a second bailout for Greece worth €109 billion ($149 billion).

“(The Poland meeting) seemed to highlight the level of disunity amongst those that have the authority to deal with the problem,” said Louise Cooper, markets analyst at BGC Partners. “The slow machinations of the political class are just not keeping up with the economic and financial reality on the ground.”

Greece’s finance minister, Evangelos Venizelos, is due to host a teleconference later Monday with the country’s international creditors: the European Commission, the European Central Bank and the International Monetary Fund. His task is to convince them that Greece is doing enough to warrant the release of the next batch of bailout cash.

While investors keep a close watch on the internal debate in Greece, they are also monitoring developments in Germany after Chancellor Angela Merkel’s government suffered a big electoral defeat in Berlin, which shut out her Free Democratic party coalition partners from a regional parliament.

Amid the uncertainty and after strong gains last week, stocks started the week in retreat.

In Europe, Germany’s DAX closed down 2.8 percent at 5,415.91 while France’s CAC-40 fell 3.0 percent to 2,940. The FTSE 100 index of leading British shares ended 2.0 percent lower at 5,259.56.

In the U.S., the Dow Jones industrial average was down 1.5 percent at 11,342.09 while the broader Standard & Poor’s 500 index fell 1.4 percent to 1,199.46.

Aside from Greece, the other main focus in the markets this week is Wednesday’s monetary policy decision from the U.S. Federal Reserve. There are growing expectations that the central bank will introduce some new measures to help boost the U.S. economy, which has seen growth slow down sharply this year. However, most analysts think the Fed will fall short of announcing another monetary stimulus program, given that inflation levels remain relatively elevated.

“Many still expect some sort of central bank assistance to be announced at this week’s Federal Reserve meeting, but the ongoing concerns over a Greek default are likely to overshadow this unless there is some sort of firm reassurance that this can be avoided,” said Ben Critchley, a sales trader at IG Index.

With stocks under pressure, the dollar garnered some support against the euro through its supposed status as a safe haven asset in times of financial volatility. The euro, which has shed a large chunk of last week’s gains after the failure of European finance ministers to unveil anything dramatic with Greece, was 0.3 percent lower at $1.3647.

“The dollar has started the new week on a firm footing, with financial markets somewhat uncertain about the next steps in the European debt market crisis,” said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank.

Earlier in Asia, Hong Kong’s Hang Seng index plunged 2.8 percent to 18,917.90, while South Korea’s Kospi index fell 1 percent at 1,820.94. China’s main index in Shanghai ended 1.8 percent lower at 2,437.79.

Japanese financial markets were closed Monday for a national holiday.

In the oil markets, prices tracked equities lower - benchmark oil for October delivery was down $2.17 at $85.79 in electronic trading on the New York Mercantile Exchange.
 

Date created : 2011-09-19

  • ECONOMY

    Geithner urges eurozone to leverage bailout fund

    Read more

  • GREECE

    Greece unveils €2 billion in cuts to secure EU/IMF bailout

    Read more

  • MARKETS

    European markets tumble over debt concerns

    Read more

COMMENT(S)