Greek Stocks Slip a Second Day After Bailout Talks End AbruptlyCecile Vannucci
Greek stocks declined after euro-area finance ministers failed to agree on bailout terms.
The ASE Index slid 2.5 percent to 838.61 at the close of trading in Athens, paring a drop of as much as 4.7 percent. Talks in Brussels ended abruptly on Monday, sending futures on the Euro Stoxx 50 Index down 1.5 percent, as Greece said it could not accept euro-area proposals for it to stick to the terms of its bailout. Commerzbank AG raised the risk of a Greek exit from the euro area to 50 percent.
Greek stock volatility has risen since former Prime Minister Antonis Samaras announced presidential elections in December. This year, the ASE had average daily moves of 3.6 percent through the end of last week, compared with 1.6 percent in 2014. Greece’s current rescue plan expires at the end of the month and failure to reach a deal risks triggering a chain reaction that could put the country’s euro membership in jeopardy.
The ASE advanced 11 percent last week, with a measure of banks rallying the most since May 2013, as leaders signaled some willingness to compromise. The gauge has rebounded 18 percent from Jan. 28, when it reached its lowest level since September 2012 with banks at a record low.