European Stocks Down on Greek Parliament Vote

Shares in London and other European markets fell on worries over whether Greece’s parliament would back the latest eurozone bailout deal.

In lunchtime trade, the FTSE 100 was down 20.01 points at 6,717.94.

France’s Cac 40 fell 6.51 points to 4,991.59 while Germany’s Dax was 51.75 points lower at 11,432.63.

Bank of England governor Mark Carney said on Tuesday that the proposed eurozone deal would require “Herculean efforts from all sides”.

Speaking to the UK Parliament’s Treasury Committee, he also said that the point at which UK interest rates may begin to rise was “moving closer”.

His comments boosted the value of sterling. The pound rose 0.6% against the dollar to $1.5576, and was 0.4% higher against the euro at €1.4132.

However, the prospect of higher interest rates hit shares in housebuilders. Taylor Wimpey fell 3.1% and Barratt Developments dropped 2.5%.

Top gainer on the FTSE 100 was Sky, which rose 3.2% after Deutsche Bank upgraded its rating on the stock to “buy”.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza