Tuesday, February 14, 2012

Global stocks fall on fresh Greek concerns

World stocks retreated today on fresh concerns over Greece's bailout and on weak US retail sales that gave investors pause about a rally that had pushed a broad measure of US equities to almost a seven-month high this week.

Euro zone finance ministers dropped plans for a special face-to-face meeting on Wednesday to finalize 130 billion euro bailout for Greece, and opted to hold a conference call instead.

The benchmark S&P 500 index has risen more than 25 percent from its recent low in early October, leading investors to question how much further the rally can run, especially in the face of the still-simmering European debt crisis.

Bank shares, which have been a barometer of investor sentiment toward Greece and the European debt crisis, fell.

The Dow Jones industrial average was down 56.42 points, or 0.44 percent, at 12,817.62. The Standard & Poor's 500 Index was down 7.72 points, or 0.57 percent, at 1,344.05. The Nasdaq Composite Index was down 14.07 points, or 0.48 percent, at 2,917.32.

The broad MSCI all-country world equity index slid 0.7 percent to 324.14, while the FTSEurofirst 300 index of top European shares closed down 0.2 percent at 1,069.75.

European shares initially fell in response to the Moody's warnings and downgrades, and briefly rebounded after data on economic sentiment in Germany, Europe's largest economy, bolstered hopes that the country was returning to growth.