U.S. equities retreated, briefly 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 0.6 percent at 11:55 a.m. in New York, trimming a weekly gain to 0.2 percent. The Stoxx Europe 600 Index dropped 0.9 percent, paring an advance in the five days. The euro was little changed at $ 1.1278 after earlier weakening earlier. Yields on 10-year Spanish and Portuguese bonds surged more than 10 basis points. Oil fell 1.3 percent in New York.
Chancellor Angela Merkel urged Greece to accept the framework for financial aid and euro-area officials demanded a proposal for stabilizing the country’s debt by the end of Friday. The euro tumbled after Merkel said in a speech that a too-strong euro makes it harder for countries “especially Spain and Portugal” to reap rewards from economic reforms.
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