Markets Decline as Angela Merkel Says No Leeway for Greece

Monday, 18 Jun 2012 12:07 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

U.S. stocks declined after German Chancellor Angela Merkel said the new Greek government should not be granted additional leeway on the terms of its bailout and Spanish bond yields advanced to a euro-era record.

Energy companies in the Standard & Poor’s 500 Index had the biggest decline among 10 industries as oil slumped amid a stronger U.S. dollar. Hewlett-Packard Co. and Alcoa Inc. retreated at least 2 percent to pace losses among the largest companies. A measure of homebuilders in S&P indexes increased 2.1 percent as confidence in the industry climbed in June to a five-year high. Facebook Inc. rallied 3.1 percent in the one- month anniversary of its initial public offering.

The S&P 500 fell 0.2 percent to 1,340.79 as of 11:40 a.m. in New York, after rising 0.3 percent. The Dow Jones Industrial Average lost 36.51 points, or 0.3 percent, to 12,730.66.

“We managed not drive off the cliff in Greece, but we still got two flat tires,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion. “There’s some heavy lifting yet to go. The challenges in Spain are very much in front of us. In the U.S., the housing market continues its slow recovery. There’s not a lot of conviction out there.”

Spain’s 10-year bond yields rose above 7 percent, sparking concern that the nation will need external funding. Greek election winner Antonis Samaras raced to build a coalition to keep bailout aid flowing after a key rival, anti-bailout party Syriza, rejected his offer to join a government.

“The important thing is that the new government sticks with the commitments that have been made,” Merkel told reporters today in the Mexican resort of Los Cabos before a Group of 20 summit. “There can be no loosening on the reform steps.”

 

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

North Korea Denounces Obama for Shutting Down Its Internet

Friday, 26 Dec 2014 23:49 PM

North Korea called President Barack Obama a monkey and blamed the U.S. on Saturday for shutting down its Internet amid . . .

Obama Contradicts Polls, Says Racial Divisions Reduced

Friday, 26 Dec 2014 19:37 PM

The nation is less racially divided today than it was six years ago, President Barack Obama says. In an excerpt from a 4 . . .

Foundation's Scott Neil: Injured Green Berets Need Your Help

Friday, 26 Dec 2014 16:42 PM

A group of dedicated military veterans is asking for help in their quest to provide financial assistance to Green Berets . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved