ECONOMY

European shares fall, Greek concerns weigh

European shares edged lower in early trading on Monday, with lingering concerns over Greece’s debt situation prompting investors to trade cautiously at the start of a new week.

German Finance Minister Wolfgang Schaeuble hinted on Saturday that Berlin was preparing for a possible Greek default, drawing a parallel with the secrecy of German reunification plans in 1989.

“There is still no deal on Greece, and that’s a concern for many investors,» said Clairinvest fund manager Ion-Marc Valahu.

Euro zone finance ministers warned Greece on Friday that its leftist government will get no more aid until it agrees a complete reform plan.

The pan-European FTSEurofirst 300 index was down 0.2 percent at 1,623.43 points by 0726 GMT.

On the positive side, Volkswagen gained 4 percent after the resignation of its chairman and HSBC rose 3.2 percent on a report that Europe’s biggest bank was weighing plans to spin off its British retail bank.

[Reuters]