Bank Shares Lead European Stock Drop as Greece Falls for 2nd Day

European stocks snapped a five-day winning streak as declines in banks outweighed a surge in miners. Greek shares slid for a second day.

Credit Agricole SA dragged lenders to the worst performance on the Stoxx Europe 600 Index, tumbling 10 percent after signaling it failed to win backing from regulators for a reorganization that may free up capital to repay investors. Total SA and Eni SpA pulled oil-and-gas companies down, as crude traded in a bear market. BHP Billiton Ltd and Rio Tinto Group rose at least 1.6 percent, pushing commodity producers to the biggest gain on the equity gauge as some metal prices rebounded.

The Stoxx 600 retreated 0.2 percent to 398.75 at the close of trading, after earlier losing as much as 0.6 percent. Italy’s FTSE MIB Index and Spain’s IBEX 35 Index dropped 1 percent.

Greece’s ASE Index, which plummeted 16 percent on reopening Monday after a five-week suspension, lost 1.2 percent, for the biggest drop among western-European markets. The emergency curbs placed on trading before the resumption of activity are making routine tasks like buying and selling often impossible, according to local brokers.

Piraeus Bank SA tumbled the maximum 30 percent for a second day, to record low. National Bank of Greece SA slid 29 percent, also to a new low.

Source: Bloomberg

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Europe Stocks Extend Rebound on Greece, Deals After Weekly Jump

European stocks extended their highest level since May on growing optimism over a resolution to Greece’s crisis and deals activity.

The Stoxx Europe 600 Index advanced 0.2 percent to 406.44 at 8:09 a.m. in London. That’s the ninth day of gains, the longest streak since April 2014.

The benchmark gauge climbed 4.3 percent last week, the most since January, as Greece and its creditors reached an agreement paving the way for a new bailout and the European Central Bank increased emergency liquidity assistance to the country.

German Chancellor Angela Merkel held out the prospect of limited debt relief for Greece, where banks are reopening after three weeks. The nation’s deadline to repay the European Central Bank 4.2 billion euros ($ 4.5 billion) is Monday. The Athens Stock Exchange will remain shut.

The opening of Euro Stoxx 50 Index futures was delayed earlier due to technical issues, Eurex said in a notice on its website.

Source : Bloomberg

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