World stocks drop as worries over Greece intensify

(Milan) – World stock markets dropped as worries intensified over the condition of the eurozone and whether Greece is edging towards leaving the single currency union. In Athens, Greek party leaders were scheduled to resume talks aimed at forming a government. But as the political wrangling dragged into its second week, markets contemplated the threat that the crisis-stricken country would not meet the terms of its bailout and drop out of the currency club.
Britain’s FTSE 100 fell 1.7 percent and Germany’s DAX tumbled 1.95 percent. France’s CAC-40 lost 2.27 percent. Wall Street also appeared set for a lower opening, with Dow Jones industrial futures down 0.8 percent to 12,686 and S&P 500 futures losing 0.9 percent to 1,337.30.
Taking the hardest hits were the Athens Stock Exchange, which saw shares drop 3.5 percent, and Spain’s Ibex, which fell 3.06 percent on continuing concerns that the country’s crippled economy would not be able to keep a handle on its borrowing costs.
Problems in Europe that also include a loss for Chancellor Angela Merkel’s party and by extension her austerity policies in a state election overshadowed news that China’s central bank cut bank reserve requirements by 50 basis points to encourage lending.
Asian stocks has also endured losses, although one notable exception was Japan, where the benchmark Nikkei 225 index rose 0.2 percent to close at 8,973.84.