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Stocks, Euro Extend Drop as Merkel Says No Leeway for Greece

U.S. and European stocks extended declines and the euro weakened further after German Chancellor Angela Merkel said the new Greek government should not be granted additional leeway on terms of its bailout.

The Standard & Poor’s 500 Index lost 0.2 percent to 1,340.39 at 11:21 a.m. in New York and the Stoxx Europe 600 Index declined a similar amount. The euro weakened 0.6 percent to $1.2567 after gaining for four straight days. Oil tumbled 1.6 percent to $82.71 a barrel.

“The imporant thing is that the new government sticks with the commitments that have been made,” Merkel told reporters today in the Mexican resort of Los Cabos before a Group of 20 summit. “There can be no loosening on the reform steps.”

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