Stocks struggle as eurozone worries persist
Greece's pro-bailout party now must form a coalition government. Spain's 10-year bond yield soars. US homebuilder sentiment hits a 5-year high. Will Microsoft unveil a new tablet?
By Andrea Tse
Stocks were stalled Monday as a victory by Greece's pro-bailout party failed to quell longer-term uncertainties about the eurozone.
Official projections show that Greece's pro-bailout New Democracy party was set to win 29.7% of votes and 129 seats in the 300-member Parliament, trumping the 26.9% of votes and 71 seats obtained by the leftist Syriza party. The New Democracy Party now faces the challenge of forming a viable coalition government.
"A temporary relief rally in the euro and risk assets does not mean that uncertainty has been eliminated," HSBC analysts said. "Antonis Samaras, the pro-bailout New Democracy leader, has said that he, too, wants to renegotiate some of the terms of the bailout, which means that a temporary halt to Troika funding cannot be ruled out. More immediately, New Democracy needs to form a coalition involving center-left Pasok, which has suggested forming a national unity government including anti-bailout party Syriza."
There are rumors that Pasok, the party that came in third, won't form a coalition with the New Democracy Party unless Syriza is involved, implying that there could be no government in Greece for a while.
"The uncertainty now begins," Paul Donovan, a global economist with UBS, said in reference to the composition of the new government and how the renegotiation of Greece's bailout terms will progress.
Meanwhile, other ongoing worries about the eurozone returned to the forefront, with
the Spanish 10-year bond yield rising above 7%, saddled by reports that bad bank loans in the country have reached an 18-year high.
The FTSE in London was ahead by 0.35%, and the DAX in Germany was rising 0.62%. Hong Kong's Hang Seng index closed higher by 1.01%, and Japan's Nikkei Average settled up 1.77%.
In the U.S., homebuilder sentiment for June came in at 29, its highest level in five years, the National Association of Home Builders reported. But any reading below 50 indicates builders generally view market conditions as weak, and the index has not topped 50 since April 2006.
In corporate news, Microsoft (MSFT) has a media event scheduled for Monday at which the software giant could unveil a tablet computer developed in conjunction with Barnes & Noble (BKS). According to TechCrunch, Microsoft has a tablet/e-reader on tap and it will be entertainment-driven. Microsoft and Barnes & Noble announced a strategic partnership in late April, with Microsoft investing $300 million in the venture. (Microsoft owns and publishes Top Stocks, an MSN Money site.)
PetSmart (PETM) announced it is raising its quarterly dividend to 16.5 cents a share from 14 cents, an increase of 18%. The company also said it will repurchase $525 million in stock. The program will begin on July 30.
Chevron (CVX)sold an equity stake in its Wheatstone project in Australia and agreed to supply additional liquefied natural gas to Tokyo Electric Power. Chevron's $29 billion Wheatstone gas-export project is expected to begin exporting gas in 2016.
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I tried posting Election results last night about 4-5 edt...They wouldn't, didn't want to be scooped.
New Dems about 30%, Syriza about 26-27%, PASOK 12% all others, the rest.
Party with the Mostest gets an additional 50 free seats in the Parliament....0f 300 seats.
New Dems had designs of coalition with PASOK, giving them 161-162 seats and a Majority.
Being able to form a New Pro-bailout Government and Austerity driven agenda.
Now PASOK is saying only if Syriza has bigger say.
These azzholes are all just plain nutz and are screwing with World Economics...
Which in reality, makes damn little sense to me, no matter what anyone says.
I think wall street was betting on Syriza to win, which in turn world get global bankers to act, my God, imagine if the Fed does'nt do anything this week, and annouce at the very least the continuation of "operation twist"---oh how the market will fall.
If you want to see something truly insightful "youtube" Euro-Titanic Nigel Faras, if you have'nt seen this rant, its quite appropriate for the times.
Nope don't think so Steve, look at the uptick already;
They are just tryng to keep everyone on their toes, dancing to the Monkey Grinder. rttn fkers.
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[BRIEFING.COM] The major averages ended higher across the board as the S&P 500 advanced 0.8%.
Equities climbed steadily since the opening bell as investors prepared for tomorrow's policy decision from the Federal Reserve. Although chatter in recent weeks has included speculation the Fed would look to taper its asset purchases, today's broad gains suggest investors expect mostly reassuring words from Chairman Bernanke at tomorrow's press conference.
All ten sectors ended with ... More
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