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by news of another bailout for cash-strapped Greece and after sharp losses in Tokyo.
London’s benchmark FTSE 100 index
was virtually unchanged at 5 854,33 points in late morning trade but in Paris the CAC 40 index lost 0,58 percent to 3 867,05 and Frankfurt’s DAX 30 slid 0,07 percent to 7 105,11.
The European single currency briefly
hit a one-month high of US$1,4658 after
Greece secured a deal on fresh EU-IMF rescue funds while disappointing employment data dashed optimism over the US economic recovery.
However, the shared eurozone unit later pulled back to US$1,4639, which was almost unchanged from US$1,4637 late in New York on Friday.
The European Union, the International Monetary Fund and the European Central Bank said on Friday they agreed to extend the next tranche of funds under Greece’s debt rescue accord package, most likely in July.
That eased worries over a possible breakdown of the 110 billion euro (US$160 billion) IMF-European Union bailout programme for Athens, with possibly huge collateral damage for the eurozone at large.
Athens can also expect a new bailout, set to amount to some 60 billion euros but its international backers will want greater control over a radical economic overhaul.
“The markets do not seem too content with the result of Friday’s discussions between Greece and the IMF/EU as we are drifting a little lower,” said Capital Spreads analyst Simon Denham.
“As much as Greeks do not like the uphill struggle they face in order to balance the books it’s a medicine they have to accept.
“There’s no question that – even if they do implement the structural changes and asset sales required to meet their budget deficit
targets in the years ahead – it will still be tough.”
Asian shares dropped on Monday as Tokyo was pulled lower by a plunging Tepco and after dismal jobs figures in the US pointed to a faltering recovery in the world’s largest economy.
The embattled utility was the biggest loser on the Nikkei after reports that it was to record a massive loss following the meltdown at its Fukushima nuclear power plant.
Trading around the region was thin, with five markets closed for public holidays, including Shanghai, Hong Kong and Seoul.
Tokyo lost 1,18 percent and Sydney was down 0,31 percent in value.
US jobs data released last Friday sent US stocks down as the economy added a paltry
54 000 jobs in May.
The Dow Jones Industrial Average was off 0,79 percent Friday.
“The outlook for the US economy is
highly uncertain,” said Southern Cross Equities executive director Charlie Aitken in Sydney. – AFP.