Forexpros - U.S. stocks traded lower at the close on Monday, ending a five week rally, on Greek debt worries.
At the close of U.S. trade, the Dow dropped 0.32%, the S&P 500 fell by 0.04% and the Nasdaq Composite gave back 0.13%.
U.S. equity weakness was triggered by renewed fears that Greece will fail to reach an acceptable deal with its private creditors.
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
French President Nicolas Sarkozy met with German Chancellor Angela Merkel today in Paris regarding the Greek situation. Merkel stated, “I don’t understand why we need a few more days—time is running out”, adding to the negative sentiment on the session.
However, Greece’s Prime Minister Lucas Papedemos reached a tentative deal with leaders of the three parties supporting his interim government. The agreement is designed to boost economic competitiveness and extend spending cuts.
During a five hour meeting yesterday, the Greek leaders agreed to make additional spending reductions equaling 1.5% of the gross domestic product.
Furthermore, Greek’s largest public and private union groups, ADEDY and GSEE called a twenty four hour general strike to protest the austerity measures.
In additional euro zone bearish news, the International Monetary Fund stated that China’s economic expansion may be cut in half by the euro zone’s debt crisis.
This Chinese crisis would warrant significant fiscal stimulus from the nation’s government. The IMF went on to state that China’s growth would drop be as much as four percentage points from the fund’s current projection for an expansion of 8.2% in 2012.
A gauge of U.S. homebuilders dropped 2.1% sending Toll Brothers and KB Home lower by 2.5% and 3.3% respectively. Raymond James added to the homebuilder bearishness by downgrading these builders, among others.
Micro Technology gave back 1.6% after replacing its CEO Mark
Durcan, who died in an experimental plane crash on February 3.
Boeing dropped 1.3% after signs of fuselage delamination surfaced
in the companies 787 Dreamliner aircraft.
After the close of European trade, the EURO STOXX 50 fell 0.29%, France's CAC 40 dropped 0.66%, while Germany's DAX .slipped 0.03%. Meanwhile, in the U.K. the FTSE 100 gave back 0.15%
At the close of U.S. trade, the Dow dropped 0.32%, the S&P 500 fell by 0.04% and the Nasdaq Composite gave back 0.13%.
U.S. equity weakness was triggered by renewed fears that Greece will fail to reach an acceptable deal with its private creditors.
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
French President Nicolas Sarkozy met with German Chancellor Angela Merkel today in Paris regarding the Greek situation. Merkel stated, “I don’t understand why we need a few more days—time is running out”, adding to the negative sentiment on the session.
However, Greece’s Prime Minister Lucas Papedemos reached a tentative deal with leaders of the three parties supporting his interim government. The agreement is designed to boost economic competitiveness and extend spending cuts.
During a five hour meeting yesterday, the Greek leaders agreed to make additional spending reductions equaling 1.5% of the gross domestic product.
Furthermore, Greek’s largest public and private union groups, ADEDY and GSEE called a twenty four hour general strike to protest the austerity measures.
In additional euro zone bearish news, the International Monetary Fund stated that China’s economic expansion may be cut in half by the euro zone’s debt crisis.
This Chinese crisis would warrant significant fiscal stimulus from the nation’s government. The IMF went on to state that China’s growth would drop be as much as four percentage points from the fund’s current projection for an expansion of 8.2% in 2012.
A gauge of U.S. homebuilders dropped 2.1% sending Toll Brothers and KB Home lower by 2.5% and 3.3% respectively. Raymond James added to the homebuilder bearishness by downgrading these builders, among others.
Micro Technology gave back 1.6% after replacing its CEO Mark
Durcan, who died in an experimental plane crash on February 3.
Boeing dropped 1.3% after signs of fuselage delamination surfaced
in the companies 787 Dreamliner aircraft.
After the close of European trade, the EURO STOXX 50 fell 0.29%, France's CAC 40 dropped 0.66%, while Germany's DAX .slipped 0.03%. Meanwhile, in the U.K. the FTSE 100 gave back 0.15%
