Eurozone Shares Set to Fall
World Economy

Eurozone Shares Set to Fall

A top eurozone share index was set for its biggest weekly fall this year on Friday, with focus on a crucial vote in Greece over its debt negotiations at the weekend.
The eurozone Euro STOXX 50 was on track for its worst week since December, down 4.2% since last Friday’s close, and flat on the day at 3,463.57, CNBC reported.
The FTSEurofirst 300 was also steady at 1,527.32 points by 0801 GMT, down 3% for the week and set for its biggest weekly fall since late April.
The market has been hit by concern over mounting tensions between Greece and its international creditors since the government in Athens announced a surprise referendum over its bailout program.
Set to take place on Sunday, the two campaigns are finely balanced, with the Yes campaign in favor of the bailout taking a slight lead in the latest poll.
“The renewed focus on Greece and the uncertainty about the implications of an exit have once again become a dominant driver in the market,” Peter Oppenheimer, Chief Global Strategist at Goldman Sachs, said in a note.
“The worst-case downside in the equity market in Europe on a ‘No’ vote is a move to around 3150 on SX5E (around 10%).”
Italian blue chips outperformed, up 0.2% after PMI survey data beat expectations. French, German and eurozone PMI readings also confirmed private sector growth.
Banks were in the spotlight, with Royal Bank of Scotland down 1.5%, a top faller after news that the state-backed British bank may need to pay $13 billion to settle claims it misled investors in mortgage-backed securities, according to documents filed in a US court.
Fifteen of the world’s largest banks are under investigation on suspicion of rigging the Brazilian currency, antitrust watchdog Cade said on Thursday, the first such probe in one of the busiest foreign exchange markets globally.

 Cutting Risky Bets
Asian stocks fell as Chinese stocks extended their plunge and growing caution ahead of Greece’s referendum prompted investors to cut risky bets, while disappointing US employment data weighed on the dollar.
Stocks in Shanghai trimmed earlier declines but were still down about 3% in afternoon trade, taking total losses to nearly 30% since a peak on June 12.
The rout in China’s stock markets has wiped out trillions of dollars of market capitalization in Shanghai and Shenzhen’s stock markets.
Financial spreadbetters expected Britain’s FTSE 100 to open down 0.1%, Germany’s DAX up 0.2%, and France’s CAC 40 or 0.3% higher.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6%. Japan’s Nikkei stock index ended broadly flat while Korea’s Kospi slipped 0.15.

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