A roundup of trading on major world markets:
NEW YORK – US stocks have dropped as worry about a Greek debt default more than offset a positive reaction to big deals in the pharmaceuticals and homebuilder sectors.
The Dow Jones Industrial Average on Monday fell 107.67 points (0.60 per cent) to 17,791.17.
The broad-based S&P 500 fell 9.68 points (0.46 per cent) to 2,084.43, while the tech-rich Nasdaq Composite Index fell 21.13 points (0.42 per cent) to 5,029.97.
European stocks fell sharply after weekend talks between Greece and creditors collapsed. US stocks were in the red all day as well, although the S&P 500 finished well above its session low of 2,072.49.
Homebuilders Ryland Group and Standard Pacific surged on news they are combining to create a company with a market capitalisation of $US5.2 billion ($A6.71 billion) and an enterprise value of $US8.2 billion.
Ryland gained 5.2 per cent, while Standard Pacific tacked on 5.6 per cent.
Target rose 1.2 per cent on news it will sell its pharmacy and clinic business for about $US1.9 billion to CVS Health. CVS Health will acquire more than 1660 pharmacies operating inside Target stores, and will expand its MinuteClinic chain in Target as well. CVS Health gained 0.4 per cent.
Health insurer Cigna vaulted 11.7 per cent higher after the Wall Street Journal reported that larger rival Anthem offered about $US45 billion to buy it. Cigna has so far rebuffed the overture, apparently over who would run the combined company. Anthem added 2.3 per cent.
Aetna, which was also mentioned by the Journal as a potential takeover target, rose 4.4 per cent.
LONDON – European stocks have sunk, with Athens plunging by over seven per cent at one stage and Germany’s main index at a four-month low, after weekend talks between Greece and its creditors collapsed sparking fresh fears of a Greek default.
Greece’s benchmark Athex index ended Monday down 4.68 per cent at 738.25 points, with Greek banking shares especially hard hit.
In Europe’s main markets Frankfurt’s DAX 30 index slumped 1.89 per cent to 10,984,97 points, sinking below the 11,000 mark for the first time since late February,
London’s benchmark FTSE 100 index of top companies closed down 1.10 per cent at 6,710.52 points, and in Paris the CAC 40 dropped 1.75 per cent to 4,815.36 points compared with Friday’s close.
“The markets were awash with red … as investors continued to deal with the aftermath of the weekend’s most recent Greek-deal collapse,” said Spreadex analyst Connor Campbell.
Kash Kamal, research analyst at Sucden Financial, added that “the threat of a Greek default and probability of a Greek exit from the euro became increasingly likely possibilities.”
Negotiations between Greece and its creditors broke down in less than an hour on Sunday, with each side blaming the other’s refusal to back down on certain issues.
On Monday, the EU pressed Greece to match major concessions made by its international creditors.
“It’s not a one-way street,” European Commission spokeswoman Annika Breidthardt told a press conference after saying the EU-IMF creditors have made “major concessions” to the left-wing government in Athens.
“The concessions … made and the flexibility that has been shown are already quite substantial,” she added.
The EU executive also said Greece has agreed to budget targets for 2015, but then asked “how credible the commitments are” to achieve them.
With Athens due to repay billions of euros in loans by the end of the month, the latest failure raises the spectre of a default, which could ultimately lead to the country crashing out of the eurozone.
HONG KONG – Asian stock markets and the euro have fallen on fears Greece could tumble out of the eurozone after talks with creditors collapsed.
The losses also followed a sell-off on Friday in New York. US investors were spooked after European officials confirmed that they had been preparing for a worst-case scenario of Greece failing to pay its bills.
Tokyo on Monday ended marginally lower, giving up 19.29 points to 20,387.79, while Shanghai sank 2.00 per cent, or 103.36 points, to 5,062.99. Hong Kong gave up 1.53 per cent, or 418.73 points, to close at 26,861.81.
Seoul lost 0.48 per cent, or 9.85 points, to end at 2,042.32.
WELLINGTON – New Zealand shares have fallen, as Contact Energy and Mighty River Power were sold by investors looking to crystallise recent gains.
The NZX 50 Index fell 26.999 points, or 0.5 per cent, to 5819.969 on Monday, having gained about five per cent since the start of the year.
