Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-Euro, stocks slide on Greek vote worries

Published 06/24/2011, 02:21 PM
Updated 06/24/2011, 02:24 PM
EUR/CHF
-
NDX
-
DJI
-
FHI
-

* Greek austerity vote concerns keep markets on edge

* Italian bank shares slip on deepening euro zone crisis

* Concerns outweigh better-than-expected economic data

* U.S. durable goods orders, German sentiment improve (Adds fresh market prices)

By Herbert Lash

NEW YORK, June 24 (Reuters) - The euro fell and global stocks slipped on Friday as concerns the Greek parliament may fail to pass the austerity measures that are critical to securing more bailout funds outweighed better-than-expected U.S. and German economic data.

The euro slid against the dollar for a third straight session and it hit a record low against the Swiss franc as investors sought traditional safe havens. For more, see: [ID:nN1E75N0B4]

European shares extended their slide to eight consecutive weeks, the longest losing streak since 1998, with Italian banks falling heavily as worries about Greece's debt crisis deepened. On Wall Street, stocks headed for three days of losses, with U.S. banks also pressured by the European debt crisis.

"There's been a flight out of banks, even the stronger ones," said Colin McLean, managing director at SVM Asset Management in Edinburgh.

"There's an increasing feeling in the market that some form of default in Greece is absolutely necessary. Even if they vote for austerity, they won't necessarily carry it through."

The STOXX Europe 600 Banking Index <.SX7P> of 50 shares fell 2.9 percent; it is down nearly 10 percent this year.

In Italy, UniCredit closed down 5.5 percent and Intesa SP fell 4.3 percent.

In currencies, the euro was last at $1.4195, down almost 0.5 percent on the day. Against the Swiss franc , the euro hit a record low of 1.1841.

The U.S. Dollar Index <.DXY>, a basket of trading partner currencies, rose 0.1 percent.

Concerns about the simmering European debt crisis trumped better-than-expected data on durable goods orders in the United States and German sentiment.

May durable goods orders rose 1.9 percent after dropping 2.7 percent in April, the Commerce Department said. Economists had expected May's orders to rise 1.5 percent.

The Munich-based Ifo think tank said its business climate index, based on a monthly survey of some 7,000 firms, rose to 114.5 in June from an originally reported 114.2 in May.

"The market is very jittery today. The economic data is being pushed to the back burner mainly because there is so much uncertainty as to whether the Greek government is going to pass the austerity measures," said Boris Schlossberg, director of FX research at GFT in New York.

Greece's parliament is scheduled to vote on the austerity plan on Wednesday and Thursday. For a timeline see: [ID:nLDE75K1EC]

World stocks as measured by MSCI's all-country world index <.MIWD00000PUS> turned lower, falling 0.1 percent, after earlier gains.

The Dow Jones industrial average <.DJI> was down 75.23 points, or 0.62 percent, at 11,974.77. The Standard & Poor's 500 Index <.SPX> was down 10.65 points, or 0.83 percent, at 1,272.85. The Nasdaq Composite Index <.IXIC> was down 26.64 points, or 0.99 percent, at 2,660.11.

The FTSEurofirst 300 <.FTEU3> index of top European shares closed down 0.1 percent at 1,074.16 points.

U.S. Treasuries prices edged higher as the steepening stock market losses fed investors' appetite for safe-haven U.S. government debt.

The benchmark 10-year U.S. Treasury note was up 12/32 in price to yield 2.87 percent.

Safe-haven German Bund futures edged to a seven-month high. [ID:nLDE75N1EG] and settled up 26 ticks on the day at 127.45.

Oil prices extended their decline after Thursday's sharp sell-off on , though losses were more moderate as the impact of a surprise announcement on the release of emergency fuel stocks from consumer nations faded. [ID:nL3E7HO07J]

ICE Brent August crude , the main gauge for world oil demand, fell $2.44 to $104.82 a barrel. U.S. crude futures traded down 28 cents at $90.74.

Brent fell about 6 percent on Thursday after the International Energy Agency announced the release of 60 million barrels of government-held stocks over the next 30 days. (Additional reporting by Gertrude Chavez-Dreyfuss, Ellen Freilich and Robert Gibbons in New York; Marie-Louise Gumuchian, Atul Prakash, William James and Claire Milhench in London; Writing by Herbert Lash; Editing by Leslie Adler)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.