MW: European stocks lower as euro climbs above $1.14
European stocks fell Thursday, on track for a third consecutive session of loss, as investors digest gyrations in the euro and monitor developments in Greece’s ongoing debt crisis.
The Stoxx Europe 600 SXXP, -0.06% shed 0.3% to 394.21. Sector-wise, only the consumer services and goods groups managed gains. The pan-European benchmark but had been down by as much as 0.9%.
At the same time, the euro EURUSD, +0.5197% leapt above $1.14, as the dollar DXY, -0.39% continued to be punished after disappointing U.S. economic data on Wednesday. The data underscored expectations that the Federal Reserve will wait until later in the year to make its first interest-rate hike.
Strengthening in the euro was a point of pressure for equities, particularly for the export-oriented German market. The DAX 30 DAX, +0.11% in Frankfurt fell 0.4% to 11,308.75.
But the euro briefly dipped back below $1.14 after Greek Finance Minister Yanis Varoufakis on Thursday said Greece’s debt repayments to the European Central Bank should be pushed back to “the distant future”, Reuters reported. Athens on Tuesday made a 750-million-euro ($836.7 million) loan repayment to the International Monetary Fund, but did so by raiding an emergency account.
Greece’s Athex Composite GD, +0.60% was down 0.1% at 828.20. Greek bond prices were higher, pushing the yield on 2-year debt down 57 basis points to 19.6%, and the yield on 10-year debt down 6 basis points to 10.33%.
In Paris, the CAC 40 PX1, +0.06% shed 0.1% to 4,959.48 and in London, the FTSE 100 UKX, -0.10% lost 0.2% to 6,935.83.
