ROME: European stocks dropped Tuesday, overtaken by worries about Greece’s persistent debt troubles, but shares of Alcatel-Lucent SA were able to shine as the French telecommunications-equipment company discusses a possible buyout by Nokia Corp.
After a tentative start, the Stoxx Europe 600 SXXP, -0.47% closed down by 0.5% at 411.70, with only the basic materials SXPP, +2.29% and oil and gas groups SXEP, +0.18% advancing. It was the first loss for the benchmark after five sessions of gains.
Greece: Greece was back in focus, with the Financial Times reporting the country is preparing to default on some of its debt payments if talks with its creditors are unsuccessful. Greek Prime Minister Alexis Tsipras denied there were plans for default. Yields on short-term Greek bonds surged, and stocks were hit, leaving the Athex Composite GD, -2.24% down 2.2% at 758.63.Trading was closed Monday for the Orthodox Easter holiday.
“Until Mario Draghi appears [Wednesday] with what is likely to be a calming balm of commentary about the pleasant effects of QE, markets look vulnerable,” wrote Chris Beauchamp, senior market analyst at IG, about the Greek situation in a note.
