Dubai: European shares declined with US futures on Monday after the new Greek Prime minister remained defiant, and weak Chinese trade data also weighed on sentiment.
Greek Prime Minister Alexis Tsipras vowed on Sunday to negotiate an end to austerity measures, fuelling concern about a confrontation with the nation’s international creditors.
“Volatility would remain in the near term due to factors concerning and Greece and geopolitical issues concerning Russia and Ukraine,” said Tariq Qaqish, head of asset management, Al Mal Capital
The EURO STOXX 50 was down 1.68 per cent to be at 3,341.24, while the FTSE All share index was down 0.73 per cent to be at 3,654.59. Deutsche Boerse AG German Stock Index was 1.58 per cent at 10,675.19.
Elsewhere in Greece, Athens Stock Exchange General Index was 5.76 per cent lower at 757.05.
“I see new lows till support level of 574 within few months,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
Dow Jones Futures was down 0.46 per cent at 17,701, while S&P futures was down 0.48 per cent at 2,043.30.
The S&P 500 rose 3 per cent last week, the most in seven weeks, as oil rebounded. The benchmark gauge erased its losses for 2015 on February 5, after posting its worst month in a year. Stocks fell in January amid concern that slowing growth overseas will hurt the US economy, while tumbling crude oil and the strengthening dollar weighed on earnings at multinational corporations.
Euro falls further:
The Euro fell against the dollar as investors became nervous about the future of Greece’s membership in the euro area.
The euro fell back to 1.1284 against the dollar on Monday.
“I expect dollar to strengthen against euro and might a new low of 1.0890 this month,” said Al Ashri.
Elsewhere, the Indian rupee fell to its lowest level in three weeks as data showing a surge in US hiring strengthened the case for a Federal Reserve interest-rate increase. The rupee weakened 0.76 per cent to end at 62.1688 a dollar.
