BackAsian shares, euro slip as Greece fails to reach debt deal
Athens' talk with lenders deadlocks, ends with no new funding; Wall Street slips after upbeat data backs Fed hike view
Premium
Tokyo: Asian shares fell and the euro skidded in Asian trade on Monday, after Greece’s talks with lenders to avert a default ended with no agreement and Wall Street logged losses ahead of a Federal Reserve meeting.
European Union officials blamed the collapse of the talks on Athens, which it said had failed to offer any new concessions to secure funding it needs to repay €1.6 billion ($1.79 billion) to the International Monetary Fund by the end of this month.
“With no deal in sight, expectations for default and exit are likely to rise sharply in the days ahead," said Elsa Lignos senior currency strategist at RBC.
The euro slipped about 0.4% on the day to $1.1235 , and was down 0.4% against the yen at 138.49.
The Japanese currency edged down against the dollar, with the US unit adding about 0.1% on the day to ¥123.53.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4%, while Japan’s Nikkei stock index slipped about 0.4%.
US stock futures were down about 0.3%.
On Friday, shares on Wall Street dropped after upbeat consumer data capped a week of solid economic reports, backing the view that the US Federal Reserve was on track to raise interest rates as early as this autumn.
For the week, the S&P 500 and the Dow Jones industrial average logged slight gains, while the Nasdaq Composite edged down.
The Fed’s policy-setting committee will hold a regular meeting on Tuesday and Wednesday this week. The focus of investor interest will be any change in the nuances of Chair Janet Yellen’s language at the usual news conference after the policy announcement.
Crude oil futures extended the previous two session’s declines as investors took profits on worries that higher Saudi Arabia output would feed the global supply glut.
Brent crude shed about 0.6% to $63.47 after gaining 0.7% for the week, while US crude fell 0.4% to $59.72 after gaining 1.5% on the week.
Gold edged up slightly to $1,180.43 a tonne after Greece’s talks with its creditors ended with no deal, but gains were capped by caution ahead of this week’s Fed meeting. Reuters
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
