Investing.com - European stocks closed lower Tuesday, despite euro zone finance ministers approving a EUR130 billion Greek bailout package and investors agreeing to provide additional debt relief to the island nation.
After the close of European trade, the EURO STOXX 50 fell 0.34%, France's CAC 40 gave back 0.21%, while Germany’s DAX dropped 0.58%. Meanwhile, in the U.K. the FTSE 100 dipped 0.29%.
European shares fell from a six month high despite the long awaited second Greek bailout package being approved by euro zone leaders.
The bailout package consists of EUR103 billion in Greek aid plus a 53.5% writedown for investors in the nation’s debt.
Fears that the bailout package is not enough were sparked by an International Monetary Fund report that showed Greek debt may balloon to 160% of gross domestic product by 2020.
In addition, unless 90% of investors agree to the bond swap, Greece may need to use force to obtain debt relief, causing legal issues.
Further worries of the incoming Athens government not enforcing the agreed upon austerity measures weighed on euro zone equities.
National Bank of Greece led financial shares lower, falling 9.5%.
Banks Intesa Sanpaolo and Deutsche Bank gave back 2.4% and 2.1% respectively.
Package delivery company, TNT Express gave back 2.9% after reporting a fourth quarter loss.
Tullow Oil dropped 3.6% upon announcing the results of an exploration well in Sierra Leone.
In bullish news, Russian gold miner, Petropavlovsk advanced 6% after being upgraded to “neutral” at Nomura Holdings.
Stocks are trading higher in the United States with the Dow gaining 0.39%, the S&P 500 advancing 0.31% and the Nasdaq moving higher by 0.40%
Investors are awaiting U.S. home sales, euro zone manufacturing and service sector activity and Australian wage price inflation on Wednesday.
After the close of European trade, the EURO STOXX 50 fell 0.34%, France's CAC 40 gave back 0.21%, while Germany’s DAX dropped 0.58%. Meanwhile, in the U.K. the FTSE 100 dipped 0.29%.
European shares fell from a six month high despite the long awaited second Greek bailout package being approved by euro zone leaders.
The bailout package consists of EUR103 billion in Greek aid plus a 53.5% writedown for investors in the nation’s debt.
Fears that the bailout package is not enough were sparked by an International Monetary Fund report that showed Greek debt may balloon to 160% of gross domestic product by 2020.
In addition, unless 90% of investors agree to the bond swap, Greece may need to use force to obtain debt relief, causing legal issues.
Further worries of the incoming Athens government not enforcing the agreed upon austerity measures weighed on euro zone equities.
National Bank of Greece led financial shares lower, falling 9.5%.
Banks Intesa Sanpaolo and Deutsche Bank gave back 2.4% and 2.1% respectively.
Package delivery company, TNT Express gave back 2.9% after reporting a fourth quarter loss.
Tullow Oil dropped 3.6% upon announcing the results of an exploration well in Sierra Leone.
In bullish news, Russian gold miner, Petropavlovsk advanced 6% after being upgraded to “neutral” at Nomura Holdings.
Stocks are trading higher in the United States with the Dow gaining 0.39%, the S&P 500 advancing 0.31% and the Nasdaq moving higher by 0.40%
Investors are awaiting U.S. home sales, euro zone manufacturing and service sector activity and Australian wage price inflation on Wednesday.