Europe Stocks Trim Weekly Gain Amid Concerns Greek Talks to Fail

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Every Sector in Stoxx 600 Is in Decline

European stocks trimmed their weekly gain amid increasing concern that Greece’s efforts to renegotiate its debt and stay in the single currency will fail.

The Stoxx Europe 600 Index slipped 0.9 percent to 389.38 at the close of trading, paring its weekly gain to 0.1 percent. Greece’s ASE Index lost 5.9 percent, for the biggest decline among western-European markets, with National Bank of Greece SA and Eurobank Ergasias SA falling more than 10 percent. Portugal’s PSI 20 Index posted the second-worst performance, with a 1.5 percent drop.

Pressure is mounting on Greece to come up with a solution after the International Monetary Fund withdrew from talks in Brussels Thursday, citing “major differences.” Greece ruled out cutting pensions and demanded debt restructuring. Euro-area officials called for a proposal to stabilize the country’s debt by the end of Friday, as Chancellor Angela Merkel urged Prime Minister Alexis Tsipras to accept a framework for aid. Her advisers are already discussing how to deal with a Greek default, Bild newspaper reported.

“I’m beginning to get concerned,” said Henrik Drusebjerg, who helps manage about $17 billion as chief strategist at Carnegie Investment Bank AB in Copenhagen. “You’re caught in a dilemma. You can’t seek the bond market for protection. You’re scared for the stock market because of Greece and the Fed, which is closing in on the first rate hike. A lot of investors are very frustrated as to where to place their money.”

Among stocks moving on corporate news Friday, Zodiac Aerospace sank 5.4 percent after saying it may not meet this year’s target for operating income.

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