Investing.com - European stocks closed lower Monday on fears that a Greek debt deal will be delayed despite progress with domestic economic affairs.
After the close of European trade, the EURO STOXX 50 fell 0.29%, France's CAC 40 gave back 0.66%, while Germany's DAX slipped 0.03%. Meanwhile, in the U.K. the FTSE 100 dropped 0.15%.
The stock sell off was caused by renewed fears that Greece will fail to reach an acceptable deal with its private creditors.
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
French President Nicolas Sarkozy met with German Chancellor Angela Merkel today in Paris regarding the Greek situation. Merkel stated, “I don’t understand why we need a few more days—time is running out”, adding to the negative sentiment on the session.
However, Greece’s Prime Minister Lucas Papedemos reached a tentative deal with leaders of the three parties supporting his interim government. The agreement is designed to boost economic competitiveness and extend spending cuts.
During a five hour meeting yesterday, the Greek leaders agreed to make additional spending reductions equaling 1.5% of the gross domestic product.
Greek’s largest public and private union groups, ADEDY and GSEE called a twenty four hour general strike to protest the austerity measures.
In additional bearish news, the International Monetary Fund stated that China’s economic expansion may be cut in half by the euro zone’s debt crisis. This Chinese crisis would warrant significant fiscal stimulus from the nation’s government.
The IMF went on to state that China’s growth would drop by as much as four percentage points from the fund’s current projection for an expansion of 8.2% in 2012.
Mining companies declined with Glencore falling 4.1%, Xstrata gave back 2.1% and Vendanta fell 3.3% after the IMF released its growth projection report.
Banks Societe Generale and Credit Agricole declined 1.9% and 2.3% respectively.
Meanwhile, the Zurich based bank, Julius Baer Group gave back 3.7% after it stated it will likely have to pay a fine to resolve U.S tax matters. The institution’s full year profit plunged by 27%.
Vestas Wind Systems dropped 7.5% after ING Groep cut its price estimates for the wind turbine maker.
In the U.S., stocks are lower with the Dow down 0.31%, the S&P 500 dropped 0.25% and the Nasdaq gave back 0.26%.
Investors are awaiting German industrial production and Fed Chairman, Ben Bernanke’s testimony before the Senate Budget Committee in Washington on Tuesday.
After the close of European trade, the EURO STOXX 50 fell 0.29%, France's CAC 40 gave back 0.66%, while Germany's DAX slipped 0.03%. Meanwhile, in the U.K. the FTSE 100 dropped 0.15%.
The stock sell off was caused by renewed fears that Greece will fail to reach an acceptable deal with its private creditors.
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
French President Nicolas Sarkozy met with German Chancellor Angela Merkel today in Paris regarding the Greek situation. Merkel stated, “I don’t understand why we need a few more days—time is running out”, adding to the negative sentiment on the session.
However, Greece’s Prime Minister Lucas Papedemos reached a tentative deal with leaders of the three parties supporting his interim government. The agreement is designed to boost economic competitiveness and extend spending cuts.
During a five hour meeting yesterday, the Greek leaders agreed to make additional spending reductions equaling 1.5% of the gross domestic product.
Greek’s largest public and private union groups, ADEDY and GSEE called a twenty four hour general strike to protest the austerity measures.
In additional bearish news, the International Monetary Fund stated that China’s economic expansion may be cut in half by the euro zone’s debt crisis. This Chinese crisis would warrant significant fiscal stimulus from the nation’s government.
The IMF went on to state that China’s growth would drop by as much as four percentage points from the fund’s current projection for an expansion of 8.2% in 2012.
Mining companies declined with Glencore falling 4.1%, Xstrata gave back 2.1% and Vendanta fell 3.3% after the IMF released its growth projection report.
Banks Societe Generale and Credit Agricole declined 1.9% and 2.3% respectively.
Meanwhile, the Zurich based bank, Julius Baer Group gave back 3.7% after it stated it will likely have to pay a fine to resolve U.S tax matters. The institution’s full year profit plunged by 27%.
Vestas Wind Systems dropped 7.5% after ING Groep cut its price estimates for the wind turbine maker.
In the U.S., stocks are lower with the Dow down 0.31%, the S&P 500 dropped 0.25% and the Nasdaq gave back 0.26%.
Investors are awaiting German industrial production and Fed Chairman, Ben Bernanke’s testimony before the Senate Budget Committee in Washington on Tuesday.