European Stocks Drop as Greece’s ASE Tumbles After Vote Results

By Jonathan Morgan  Dec 29, 2014 12:41 PM GMT+0200

Bloomberg

European stocks extended losses after Greek Prime Minister Antonis Samaras failed in his third and final attempt to get enough backing for his presidential candidate.

The Stoxx Europe 600 Index lost 0.5 percent to 342.27 at 10:40 a.m. in London, sliding as much as 0.8 percent, with Greece’s ASE Index (ASE) plunging 11 percent, the most among 18 western-European markets.

The Stoxx 600 is down 1.6 percent this month, on pace for its first December decline since 2008, while the ASE is heading for its lowest close since October 2012. Short bets on an exchange-traded fund tracking Greek shares climbed this month to the highest level since May 2012, just before the benchmark ASE fell to a low in the wake of the nation’s debt restructuring.

Benchmark stock indexes of Italy, Spain and Portugal slid more than 1.6 percent. Germany’s DAX Index declined 1.2 percent.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net