Markets badly affected by Greek crisis

Mounting concerns about Greece hit markets after talks between the country and its creditors broke down. US stocks fell, while major indexes in Europe took much bigger losses. The losses were broad.

Nine of the 10 industry sectors in the S&P 500 index slumped. The only exception was utilities, a traditional safety play.

DUBLIN

The Iseq index of Irish shares fell 2.49 per cent. The market in Dublin opened nervously, with stocks marked down as a result of the ongoing crisis in Greece, although as the day unfolded, there was less nervousness abroad than had been expected. Bank of Ireland was marked down to 35 cents, before finishing at 36 cents, a fall of 5.5 per cent on the day.

Data from the US indicating a slowdown there in new road projects being given the get-go, contributed to the 2.73 per cent fall in the CRH share price, which closed at €25.52. Irish Continental Group was a rarity in that it finished the day up, at €3.96, a rise of 2.03 per cent.

LONDON

Britain’s top share index fell sharply, with investor sentiment punctured by Greece’s deepening debt crisis and Athens’s imposition of capital controls.

Travel and leisure stocks were hit hard by events in Greece, a popular holiday destination for Europeans, while tour companies were evacuating thousands of holidaymakers from Tunisia after a gunman killed dozens of people at a beach hotel on Friday.

The blue-chip FTSE 100 index was down 2 per cent at the close. Pressure was put on the index by a 2.2 per cent drop in UK banking index after Greece closed its banks to check the growing strains on its crippled financial system.

Among companies evacuating tourists from Tunisia following Friday's attack, TUI Travel shed 7.1 per cent, making it the biggest FTSE 100 faller. The firm's Thomson and First Choice businesses said they had about 6,400 customers across the country.

International Consolidated Airlines Group and budget airline EasyJet fell 4.1 per cent and 2.1 per cent respectively.

Basic resources stocks also dropped, with the UK mining index down 0.7 per cent. Although shares in China, the world's top metals consumer, extended a recent decline, precious metal miners Randgold and Fresnillo were two of only three stocks in positive territory, as gold was boosted by investors looking for safe-havens.

EUROPE

European stocks slumped as Greece teetered on the brink of default after bailout talks fell apart. While the Athens Stock Exchange stayed shut, peripheral equities plunged.

Spanish, Italian and Portuguese shares slid at least 4.6 per cent. Germany’s DAX lost 3.6 per cent and the CAC-40 in France lost 3.7 per cent.

Among Greek companies listed elsewhere, the National Bank of Greece plunged 20 per cent in New York, while Coca-Cola lost 3.4 per cent and Goldenport Holdings slipped 1 per cent each in London.

Banco Comercial Portugues, Banca Monte dei Paschi di Siena and Banco Popular Espanol plunged at least 7.2 per cent. Among car shares, Daimler and BMW dropped more than 4 per cent each.

NEW YORK

US stocks retreated, with the biggest drop in more than a month, amid mounting concern about Greece. Financial shares in the Standard & Poor's 500 Index fell 1.7 per cent as Citigroup and JPMorgan Chase slipped at least 1.6 per cent.

The Dow Jones Industrial Average lost 1.3 per cent and the Nasdaq Composite Index fell 1.4 per cent.

Macy's fell 2.4 per cent, its biggest decline since May 13th, after Deutsche Bank downgraded the department-store chain.

Staples and Best Buy slid more than 3 per cent. Utilities shares gained 0.5 per cent as falling US Treasury yields make the group's dividend payout look more attractive.

FirstEnergy added 1 per cent, while Consolidated Edison and American Electric Power rose at least 0.8 per cent. – (Reuters/ Bloomberg)