U.S. equities retreated, almost erasing a gain for the week, while European stocks tumbled with the region’s higher-yielding bonds amid growing concern Greece will run out of time for reaching a deal to stave off default.
The Standard & Poor’s 500 Index lost 0.8 percent at 4 p.m. in New York, leaving it little changed for the week. The Stoxx Europe 600 Index dropped 0.9 percent, paring an advance in the five days. The euro traded at $ 1.12575 after earlier weakening. Yields on 10-year Spanish and Portuguese bonds surged more than 10 basis points, while rates on German bunds slipped. Oil fell 1.3 percent in New York.
European officials are preparing for the worst as Prime Minister Alexis Tsipras’s brinkmanship pushes Greece’s finances to the limit, while German Chancellor Angela Merkel urged him to accept the framework for financial aid. Euro-area officials demanded a proposal for stabilizing the country’s debt by the end of Friday, after IMF negotiators left a meeting earlier this week without a compromise.
The Greek crisis overshadowed data showing the U.S. economy continues to gain speed. Wholesale prices in the U.S. rose in May, giving the figure gains in two of the past three months that may eventually filter through to consumers, helping reassure Federal Reserve policy makers that inflation is progressing toward their target.
Source : Bloomberg