ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.

European equities carnage as Greece saga takes another twist

Markets around the world have once again been spooked by Greece as the European Central Bank limited funding over the weekend and capital controls were imposed.

European equities have been the worst hit naturally, with the DAX down by over 3% to 11138 by mid-morning, the CAC 40 dropping 3.2% to 4898, Spain’s IBEX 35 down 3.7% to 10944 and the FTSE MIB which represents Italy’s top companies was 3.8% lower at 22898.

The FTSE 100 fared better than continental European but shed 1.6% to 6645 in morning trading as investors looked for safety.

Markets in the United States are expected to see a similar sell off when they open this afternoon.

Conversely, investment grade bond prices have broadly risen as money pulled from equities came flooding in, though peripheral government bonds took a hit following the breakdown of negotiations with Greece. 

Greece is not the only thing troubling markets at the moment though, with escalating concerns over terrorism and China also being factors.  

“Global markets today face a triple whammy of negative news, with the deterioration in the Greek situation accompanied by the first chance to react to Friday’s terrorist atrocities and a further steep fall in Chinese markets, taking them to technical bear market territory,” said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.

“The IMF deadline tomorrow now looms large, whilst investors will now be looking for any possibility of an eleventh hour rescue to prevent either or both of a Greek default or exit,” he added.  

“I think we are witnessing the maximum level of concern about Greece today,” said Dominic Rossi, Global CIO of Equities at Fidelity Worldwide Investment. “European markets are down 4% and the US is indicated to fall 2%.” 

MORE ARTICLES ON

  • Can M&A and buybacks breathe life into UK market?

    Can M&A and buybacks breathe life into UK market?

    Both buybacks and M&A should help realise value in UK shares, boosting prices and giving investors another reason to consider the UK stockmarket Not only does M&A activity appear to be picking up, with a high-profile bid for UK electronics retailer Currys, but the scale of company buybacks continues to accelerate. If it goes well,…

  • Capital Group launches multi-thematic Article 8 funds

    Capital Group launches multi-thematic Article 8 funds

    Capital Group has launched a set of multi-thematic sustainable funds that are available for investors in Europe, writes Christian Mayes. The Capital Group Sustainable Global Opportunities fund (LUX) will invest in global equities, while the Capital Group Sustainable Global Corporate Bond fund (LUX) will target fixed income exposure. The launch also includes a multi-asset offering…

  • Bond funds pull in €29.7bn in January – LSEG

    Bond funds pull in €29.7bn in January – LSEG

    Bond products were the best-selling asset class in January, according to LSEG Lipper’s European Fund Flow report, writes Christian Mayes. The asset class pulled in a net €29.7bn in the month, while Money Market USD grouping was the best-selling Lipper Classification after receiving €11.2bn inflows. Providers of mutual funds pulled in €22.5bn, while passives saw net…

  • Quarter of Article 8 funds at risk of greenwashing – MainStreet Partners

    Quarter of Article 8 funds at risk of greenwashing – MainStreet Partners

    A quarter of all Article 8 funds could be accused of greenwashing based on their sustainability framework and practices, according to MainStreet Partners, writes Christian Mayes The 24% of funds classified as a greenwashing risk by the 2024 ESG Barometer report marks a four percentage point increase from the 20% flagged at the end of…

  • EU green rules could stymie decarbonisation projects – ExxonMobil

    EU green rules could stymie decarbonisation projects – ExxonMobil

    The European Union’s climate regulations may lead to it halting its investments in Europe, ExxonMobil has warned. Speaking to the Financial Times, Karen McKee, president of the product solutions division, said the oil and gas giant had struggled to begin decarbonisation projects in Europe due to the regulatory burden. The result, she added, was that…

  • ICE flags need for Europe to double green investment

    ICE flags need for Europe to double green investment

    Investments to modernise energy and transport must double by the end of the decade to reach 2030 climate targets, the EU has been warned. According to the Institute for Climate Economics (ICE), which has released the European Climate Investment Deficit report, the bloc lacks what it calls a “consistent tool” to ensure monitoring of the…