TOKYO (AP) — Global stock markets sagged Tuesday as jitters mounted over whether Greece and its creditors can reach a bailout agreement that will keep the country from defaulting on its debts.
KEEPING SCORE: France’s CAC 40 lost 0.4 percent to 4,795.62 while Germany’s DAX slipped 0.5 percent to 10,929.13. Britain’s FTSE 100 edged down 0.4 percent to 6,681.81. U.S. shares were set to fall, with S&P 500 futures 0.2 percent lower and Dow futures down 0.1 percent.
GREECE WORRIES: Global markets are getting shaken by Greece after weekend negotiations between the country and its creditors failed to get the struggling nation closer to a bailout deal. Greek leaders want the final 7.2 billion euros ($8.2 billion) of their bailout program that they need to pay debts at the end of June. Without the loans, Greece is likely to default on its debts this summer, something that could push it out of the euro, with uncertain consequences for Europe and the global economy.
THE QUOTE: “The worry lies in the possibility that the credibility of the EU may have suffered substantially, should Greece be allowed to go into cardiac arrest,” Bernard Aw, market strategist at IG in Singapore, said in a commentary. The issue could also spread to other “vulnerable EU countries such as Spain and Portugal to consider whether staying in EU is right for them,” he said.
FED POLICY: Markets are eyeing the U.S. Federal Reserve’s two-day June policy meeting, which kicks off later in the day. The big question is what clues the Fed will give about when it will start raising interest rates.
ASIA’S DAY: Japan’s Nikkei 225 dipped 0.6 percent to 20,257.94 and South Korea’s Kospi lost 0.7 percent to 2,028.72. Hong Kong’s Hang Seng fell 1.1 percent to 26,566.70. Other Asian benchmarks, including Taiwan and Singapore, were also lower.
CURRENCIES: The dollar was down slightly, at 123.46 yen from 123.52 yen the previous day. The euro was down to $1.1229 from $1.1247.
ENERGY: Benchmark U.S. crude oil recouped earlier losses, adding 45 cents to $59.97 a barrel in electronic trading on the New York Mercantile Exchange. The contract hit a high for the year last Wednesday.
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