Greek deal worry weighs on stocks
MARKETS were subdued on Wednesday as investors worried that the Greek bailout plan might not be enough to keep the country from eventually defaulting on its debts and possibly leaving the euro currency bloc.
Under a deal reached on Tuesday, Greece will get $172 billion from its partners in the 17-nation eurozone and the International Monetary Fund to meet its immediate debt obligations.
It is Greece’s second bailout following a $146 billion rescue in 2010.
Germany’s DAX was down 0.9 percent at 6,848 and the CAC-40 in France was 0.4 percent lower at 3,452. The FTSE 100 index of leading British shares was down 0.4 percent at 5,906.
Markets will continue to monitor developments in Athens Wednesday as the country’s lawmakers start debating emergency legislation to approve the private debt relief deal and the promised spending cuts, while unions plan a new anti-austerity rally outside Parliament.
In the currency markets, the euro was flat at $1.3235 even after a surprisingly big 1.9 percent monthly increase in eurozone industrial orders in December.
Analysts said the figures are prone to volatility.
The British pound was the big mover in the currency markets, falling around half a cent against the dollar to $1.5719 after minutes to the last rate-setting meeting of the Bank of England showed that two of the nine members of the Monetary Policy Committee voted for a 75 billion pounds monetary stimulus.