European Stocks Decline Second Day Before Greek Austerity Vote
3 July 2015, 12:59
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European stocks declined, heading for their worst week in two months, as investors awaited Sunday’s Greek referendum on austerity.
The Stoxx Europe 600 Index slipped 0.2 percent to 384.61 at 11:22 a.m. in London. With polls showing the Greek vote is too close to call, stocks in Europe have dropped 3.1 percent this week. Benchmark indexes in Spain, Italy and France are heading for their biggest weekly slump since at least January. The volume of Stoxx 600 shares changing hands today was 35 percent below the 30-day average. A measure of stock volatility headed for a three-year high.
“Sunday’s vote is pretty important for everyone right now,” said Dirk Thiels, head of investments at KBC Asset Management in Brussels. “Until then, we’ll be in a cautious mode, and we won’t change that until we have some idea of where this Greek story is going. We’ve gone underweight equity and reduced our periphery exposure in bonds.”
Greek Prime Minister Alexis Tsipras is campaigning for citizens to vote “no,” while the rest of the 19-nation currency bloc says a clear “yes” could get Greece back on the path to reform. A poll commissioned by Bloomberg News showed 43 percent of Greeks intend to reject the austerity demanded by creditors in exchange for financial aid, while 42.5 percent will accept the conditions.
Regardless of the result, Germany and the rest of the euro region are bracing for more political upheaval followed by tortuous negotiations. There’s no quick fix to the crisis because European Union rules make talks on financial aid difficult to restart, according to an official in Chancellor Angela Merkel’s government.
K+S Advances
Among stocks moving on corporate news, K+S AG added 5.3 percent after Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. said it can address the German company’s concerns about its takeover proposal.
Rio Tinto Group dropped 1.1 percent and BHP Billiton Ltd. slipped 1.5 percent as iron ore headed for the biggest weekly loss since April amid a surge in shipments and data showing the slowdown in China’s steel industry deepened.
Royal Bank of Scotland Group Plc fell 2 percent after U.S. regulators told the lender it could pay as much as $13 billion if it loses a lawsuit over its handling of mortgage securities.
The Stoxx Europe 600 Index slipped 0.2 percent to 384.61 at 11:22 a.m. in London. With polls showing the Greek vote is too close to call, stocks in Europe have dropped 3.1 percent this week. Benchmark indexes in Spain, Italy and France are heading for their biggest weekly slump since at least January. The volume of Stoxx 600 shares changing hands today was 35 percent below the 30-day average. A measure of stock volatility headed for a three-year high.
“Sunday’s vote is pretty important for everyone right now,” said Dirk Thiels, head of investments at KBC Asset Management in Brussels. “Until then, we’ll be in a cautious mode, and we won’t change that until we have some idea of where this Greek story is going. We’ve gone underweight equity and reduced our periphery exposure in bonds.”
Greek Prime Minister Alexis Tsipras is campaigning for citizens to vote “no,” while the rest of the 19-nation currency bloc says a clear “yes” could get Greece back on the path to reform. A poll commissioned by Bloomberg News showed 43 percent of Greeks intend to reject the austerity demanded by creditors in exchange for financial aid, while 42.5 percent will accept the conditions.
Regardless of the result, Germany and the rest of the euro region are bracing for more political upheaval followed by tortuous negotiations. There’s no quick fix to the crisis because European Union rules make talks on financial aid difficult to restart, according to an official in Chancellor Angela Merkel’s government.
K+S Advances
Among stocks moving on corporate news, K+S AG added 5.3 percent after Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. said it can address the German company’s concerns about its takeover proposal.
Rio Tinto Group dropped 1.1 percent and BHP Billiton Ltd. slipped 1.5 percent as iron ore headed for the biggest weekly loss since April amid a surge in shipments and data showing the slowdown in China’s steel industry deepened.
Royal Bank of Scotland Group Plc fell 2 percent after U.S. regulators told the lender it could pay as much as $13 billion if it loses a lawsuit over its handling of mortgage securities.
Seadrill Ltd and Tullow Oil led decliners on a measure of energy stocks, falling at least 2.9 percent, as oil headed for its biggest weekly decline since March.
seemore signals https://www.mql5.com/en/signals/111434
