ECONOMY

Greek stocks fall for a second day as bailout talks end abruptly

Greek stocks tumbled after euro-area finance ministers failed to agree on bailout terms.

The ASE Index slid 4.6 percent to 820.36 at 10:35 a.m. in Athens. Talks in Brussels ended abruptly on Monday, sending futures on the Euro Stoxx 50 Index down as much as 1.5 percent, as Greece said it could not accept euro-area proposals for it to stick to the terms of its bailout. Commerzbank AG raised the risk of a Greek exit from the euro area to 50 percent.

Greek stock volatility has risen since former Prime Minister Antonis Samaras announced presidential elections in December. This year, the ASE had average daily moves of 3.6 percent through the end of last week, compared with 1.6 percent in 2014. Greece’s current rescue plan expires at the end of the month and failure to reach a deal risks triggering a chain reaction that could put the country’s euro membership in jeopardy.

The ASE advanced 11 percent last week, with a measure of banks rallying the most since May 2013, as leaders signaled some willingness to compromise. The gauge rebounded 21 percent through Monday from Jan. 28, when it reached its lowest level since September 2012 with banks at a record low.

[Bloomberg]