ROME: European stocks fell for a second day and the euro weakened as investors braced for the end of Greece’s bailout funding. Chinese shares rallied and Standard & Poor’s 500 Index futures rose, indicating the index will rebound from its biggest slump in a year.
The Stoxx Europe 600 Index slid 0.4 percent by 10:53 a.m. in London, paring earlier losses. The euro declined 0.5 percent to $1.1185. Italian bonds rebounded, with the 10-year yield falling two basis points to 2.37 percent. Standard & Poor’s 500 Index futures rose 0.7 percent. The Shanghai Composite Index jumped 5.5 percent reversing a decline of as much as 5.1 percent earlier in the day. Nickel dropped to a six-year low.
About $1.5 trillion was erased from the value of global equities Monday, the most in two years, after Greek Prime Minister Alexis Tsipras short-circuited bailout talks by calling a referendum on creditor demands. The focus Tuesday shifts to whether Greece will miss a $1.7 billion payment to the International Monetary Fund with Europe’s funding program due to expire at midnight.
