ROME: European stocks fell for a second day as investors weighed Greece’s ability to meet a payment amid an expiry of its bailout package.
The Stoxx Europe 600 Index dropped 1.3 percent to 381.31 at the close of trading, taking its second-quarter loss to 4 percent. Greece is set to withhold a $1.7 billion payment due to the International Monetary Fund on Tuesday, when its euro-area aid package also runs out. Equities tumbled on Monday after Greece called for a July 5 referendum on creditor demands, shut its banks and imposed capital controls.
Stocks earlier pared a drop of as much as 1.4 percent on Tuesday after an official said European Commission President Jean-Claude Juncker set out details to Greek Prime Minister Alexis Tsipras on how his country can reach an accord. Shares then almost erased declines after German Finance Minister Wolfgang Schaeuble was said to tell lawmakers Greece would stay in the euro for the time being if voters reject austerity.
“Who would have thought that Greece would even get to this stage?” said Ben Kumar, who helps oversee about $14 billion at Seven Investment Management in London. “Today should have been about putting the finishing touches on photos of Tsipras and creditors signing a deal. Instead, we have to wait out this week with more uncertainty. I miss the first quarter when stock moves made fundamental sense. Now we’re just back to risk off or risk on. It’s just annoying.”
