LONDON: European stocks dropped after the leader of Greece’s biggest political party failed to reach an agreement on a new government following the weekend’s elections. U.S. index futures retreated while Asian shares rose.
The Stoxx Europe 600 Index slid 0.4% to 253.92 at 1:25 p.m. in London. Stock trading on Deutsche Boerse’s AG Xetra system opened after a delay of 80 minutes. The MSCI Asia Pacific Index rose 0.2%. The UK market was closed for a holiday yesterday.
National Bank of Greece SA led a selloff in banks, falling 6.5%. Spain’s Bankia SA slid 4.8%. Taylor Wimpey Plc led U.K. builders lower after a gauge of house prices fell to a six-month low. Royal KPN NV surged 20% after America Movil SAB offered 2.6 billion euros (US$3.4 billion) for a larger stake in the business.
The Stoxx 600 rose yesterday as German Chancellor Angela Merkel said she will receive France’s president-elect, Francois Hollande, with “open arms.” The volume of shares changing hands on the Stoxx 600 today was 6.5% higher than the average of the last 30 days, data compiled by Bloomberg show. The VStoxx Index, which measures the cost of Euro Stoxx 50 Index options, gained 1.2% to 29.25. (Bloomberg/T05/aph)