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World markets decline as Greece bailout talks falter

World markets decline as Greece bailout talks falter

Athens deadlock attributed to playing a zero-sum game

By (Agencies)

Published: Fri 26 Jun 2015, 10:08 PM

Last updated: Wed 8 Jul 2015, 3:06 PM

Seoul — Global stock markets were lower Thursday as negotiations to keep Greece from defaulting dragged on without result, dimming hopes of a deal this week. But US futures were slightly higher ahead of the release of consumer spending and unemployment figures.

European stocks opened weaker with Britain’s FTSE 100 down 0.1 per cent to 6,839.29. France’s CAC 40 dipped 0.2 per cent to 5,036.62 and Germany’s DAX was nearly unchanged at 11,472.59. Futures showed that Wall Street was set to recoup losses from the previous session. S&P 500 futures rose 0.4 per cent and Dow futures advanced 0.5 per cent. 

Crucial talks between Greece and its international creditors ended without result early Thursday, casting fresh doubt over the country’s future in the euro currency and piling new pressure on negotiators to reach a deal later in the day.

After an eight-hour grilling with the leaders of the three main institutions handling his country’s massive debts, Greek Prime Minister Alexis Tsipras left the talks in Brussels without speaking to reporters.

Technical experts were due to resume their deliberations just after dawn in Europe to thrash out the details of Greece’s reform plans.

“Traders who thought that a bailout deal for Greece will be smooth sailing after Monday’s meeting are now having second thoughts,” said Bernard Aw, a market strategist at IG. “The reality is that time is running out for Greece and a major part of the problem for the deadlock is that they seem to be playing a zero-sum game.”

Japan’s Nikkei 225 was down 0.5 per cent to 20,771.40 and South Korea’s Kospi finished nearly unchanged at 2,085.06. Hong Kong’s Hang Seng declined 1 per cent to 27,145.75. Australia’s S&P/ASX 200 fell 1 per cent to 5,632.70. Stocks in Southeast Asia were lower. China’s Shanghai Composite, which started higher, closed 3.5 per cent lower at 4,527.78.

Benchmark US crude for August delivery was up 1 cent to $60.28 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 74 cents to close at $60.27 a barrel on Wednesday after the Energy Department reported an increase in stockpiles of gasoline and diesel in its weekly inventory report.

Brent crude, a benchmark for international oils used by many US refineries, added 44 cents at $63.92 a barrel in London. The euro fell to $1.1168 from $1.1206 while the dollar weakened to 123.57 yen from 123.84 yen.

Meanwhile, S&P BSE benchmark sensex continued its upward march by jumping 166 points to 27,895.97 due to short-covering from opreators in view of the last day of the futures and options June contract.

Prime Minister Narendra Modi launched smart cities, housing for all and urban rejuvenation schemes for Asia’s third largest economy also boosted the market sentiment. Shares of Capital Goods, Realty, Power, Auto and Refinery sectors were the major gainers of the day.

The sensex resumed lower at 27,660.22 and dropped further to 27,635.76 on initial selling pressure.

However, it recovered afterwards to 27,968.75 on fresh buying before ending at 1-month high at 27,895.97, showing a gain of 166.30 points of 0.60 per cent.

The sensex had last ended at 27,957.50 on May 22, 2015. The CNX Nifty also firmed up by 37.15 points of 0.44 per cent to finish at 8,398.00. In overseas stock markets, Asian stocks ended lower tracking a negative lead from Wall Street after negotiations between Greece and its creditors hit a stalemate overnight.

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