Asian equities are set for a lackluster start on Tuesday following a break down in negotiations between Greece and its European creditors and an absence of lead from Wall Street.
Greece rejected a proposal by its euro zone partners on Monday, throwing up uncertainty over talks related to its debt. European markets ended modestly lower on Monday, while the euro dropped slightly to trade at $1.13 to the dollar. “The biggest risk now is an unsuccessful negotiation and we end up with a big surprise similar to the Lehman Brothers collapse in 2008. So markets are nervous and leaders in Europe don’t want to lose cohesiveness among members,” Fariborz Moshirian, director of the Institute of Global Finance at the University of New South Wales, told CNBC’s “The Rundown.” U.S. markets were shuttered on Monday for a public holiday.
Australia’s S&P ASX 200 index retreated from Monday’s seven-year closing high, down 0.5 percent in early trade on the back of steep declines among the big four lenders. Australia and New Zealand Banking Group opened down nearly 3 percent each despite posting a 3.5 percent rise in first quarter cash profit. Commonwealth Bank of Australia also fell by the same margin following news that the bank’s chief executive officer sold 8,250 ordinary shares worth $751,000.
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