Markets Decline as Angela Merkel Says No Leeway for Greece

Monday, 18 Jun 2012 12:07 PM

 

Share:
  Comment  |
   Contact Us  |
  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.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Fox Executive Fired Over Flight 370 Charity Email

Saturday, 19 Apr 2014 18:22 PM

A veteran Fox executive who used her company email account to plan aid for loved ones of the missing Malaysian airplane' . . .

Lamar Alexander Touts Newt's 'Breakout' in Weekly Address

Saturday, 19 Apr 2014 09:45 AM

Government should enable Americans to succeed, not pass mandates to control them, Tennessee Republican Sen. Lamar Alexan . . .

Experts: Obamacare Threatens to Send Healthcare Costs Skyrocketing

Saturday, 19 Apr 2014 16:21 PM

President Barack Obama says Obamacare is covering more Americans at a lower cost than was anticipated, but healthcare ex . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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