World stocks slip on Greek impasse with creditors

AP News
Posted: Jun 05, 2015 5:11 AM

SEOUL, South Korea (AP) — World stock markets sank Friday, with European benchmarks extending losses on uncertainty over the implications of Greece's decision to delay IMF repayments.

KEEPING SCORE: European stocks slumped in early trading, with France's CAC 40 down 1.3 percent at 4,922.09 and Germany's DAX shedding 1.1 percent to 11,215.40. Britain's FTSE 100 fell 0.9 percent to 6,799.65. U.S. stocks were poised to open higher, with Dow futures up 0.1 percent at 17,934.00 and S&P 500 futures gaining 0.1 percent to 2,100.50.

GREEK TURMOIL: The Mediterranean country's battle to stay afloat is intensifying after the government said it would postpone a payment due Friday to the International Monetary Fund until the end of the month. Prime Minister Alexis Tsipras is scheduled to address an emergency session of Parliament on Friday as discontent rises within his party.

ANALYST'S TAKE: "With uncertainty about Greece repaying or not repaying the IMF today out of the way ... markets may focus on the political fall-out from this decision," Rabobank strategists said in a report.

AMERICAN JOBS: Investors were also cautious ahead of the release of the U.S. government's monthly jobs report, which may provide hints on the health of the world's biggest economy. Economists predict that employers added 227,500 jobs in May and the unemployment rate will hold steady at 5.4 percent.

ASIA'S DAY: Tokyo's Nikkei 225 fell 0.1 percent to close at 20,460.90 and South Korea's Kospi fell 0.2 percent to 2,068.10. Hong Kong's Hang Seng dropped 1.1 percent to 27,260.16 and Australia's S&P/ASX 200 slipped 0.1 percent to 5,498.50. Southeast Asian benchmarks were also mostly lower but the Shanghai Composite Index in mainland China gained 1.5 percent to 5,023.10.

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ENERGY: Benchmark U.S. crude dropped 63 cents to $57.38 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.64 to close at $58.00 a barrel on Thursday on expectations that OPEC would decide to keep its output high at its Friday meeting in Vienna. Brent crude, a benchmark for international oil used by many U.S. refineries, lost 41 cents to $61.62 in London.

CURRENCIES: The euro rose to $1.1259 from $1.1195. The dollar strengthened to 124.79 yen from 124.45 yen.