Business

US Stocks Lower After Setback in Greek Debt Talks

People walk past the Bank of Greece headquarters, in central Athens, on Friday, March 6, 2015 . European Central Bank head Mario Draghi said the ECB "stood ready" to once again permit Greek banks to use junk-rated Greek government bonds as collateral to get credit from the ECB. That would happen as soon as the bank assesses that Greece is likely to successfully complete a creditor review of its progress. (AP Photo/Petros Giannakouris)
People walk past the Bank of Greece headquarters, in central Athens, on Friday, March 6, 2015. (AP Photo/Petros Giannakouris)

MATTHEW CRAFT, AP Business Writer

NEW YORK (AP) — The U.S. stock market turned lower on Friday as a setback in talks between Greece and its creditors heightened concerns that the country could default on its debts. An unexpected decision by the International Monetary Fund to walk away from talks with Greece spurred the selloff in Europe and America.

KEEPING SCORE: As of 1:17 p.m. Eastern Time, the Standard & Poor’s 500 index was down 14 points, or 0.7 percent, to 2,095. The Dow Jones industrial average dropped 143 points, or 0.8 percent, to 17,896, and the Nasdaq composite lost 28 points, or 0.6 percent, to 5,054.

The losses were modest but broad: All 30 companies in the Dow average and all 10 industries in the S&P 500 traded lower.

WALKOUT: At a summit meeting in Brussels late Thursday, the IMF pulled its negotiators out of talks with Greece, saying there had been no progress and that major differences remained on key issues. Without a deal by the end of the month, Greece faces the prospect of going bankrupt and dropping the euro currency.

UNCERTAINTY: Ninh Chung, head of investment strategy at SVB Asset Management, said that markets are likely to make sudden turns until Greece and its creditors reach a deal. Earlier this week, markets on both sides of the Atlantic rallied on reports of progress in the talks. “There had been optimism over Greece,” Chung said, “and now it seems like we’ve had a complete 180.”

EUROPE: Major indexes in Europe slumped, erasing gains made earlier in the week. Greece’s market fell the most, with the main Athens index down 6 percent. Germany’s DAX sank 1.2 percent, and the CAC-40 in France finished with a loss of 1.4 percent. Britain’s FTSE 100 lost 1 percent.

WINGSTOP POP: Back in the U.S., shares of Wingstop vaulted 56 percent in their first day of trading as a public company. The chicken-wings chain raised $110.2 million in its initial public offering late Thursday, selling shares to investors at $19 each. In early afternoon trading, Wingstop rose $10.84 to $29.84.

CRUDE: Benchmark U.S. crude sank 71 cents to $60.06 a barrel in New York. Brent crude, a benchmark for international oil, fell 31 cents to $65.48.

BONDS: U.S. government bond prices rose, tugging the yield on the 10-year Treasury note down to 2.36 percent from 2.38 percent the day before. Bond yields fall when prices rise.

ASIA’S DAY: Japan’s Nikkei 225 inched up 0.1 percent. In China, the Shanghai composite index advanced 0.9 percent, and Hong Kong’s Hang Seng rose 1.4 percent.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Tags
Show More

Related Articles

Leave a Reply

Back to top button

Subscribe today for free and be the first to have news and information delivered directly to your inbox.


By submitting this form, you are consenting to receive marketing emails from: Washington Informer Newspaper, 3117 Martin Luther King Jr. Ave SE, Washington, DC, 20032, http://www.washingtoninformer.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Adblock Detected

Please consider supporting us by disabling your ad blocker
%d bloggers like this: