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 Trading in European markets remained calm as investors hoped an
emergency meeting of euro zone leaders next week will keep Greece
from defaulting at the end of the month on 1.6 billion euros in debt
owed to the International Monetary Fund.
The subdued reaction to the Greek crisis in recent weeks supports
the notion that the exposure of Europe's private sector to Greece is
minimal, and that a default or a Greek exit from the euro zone would
have little impact on the other economies.
Greek shares <.ATG>, down 17 percent so far this year, rose 0.57
percent even though talks collapsed late on Thursday.
The euro dipped 0.11 percent against the dollar, within recent
ranges. Major European stock markets gained, with the exception of
Germany.
But the dollar and Treasury prices rose, a sign some investors were
seeking safety in those assets. Greeks pulled more than 1 billion
euros out of their banks in a single day, banking sources said on
Friday.
"Right now, what the market has priced in is a reasonably positive
outcome, one that would delay any default," said Millan Mulraine,
deputy head of U.S. strategy at TD Securities in New York. "But the
markets are still nervous and that's what we're seeing in
Treasuries."
Benchmark 10-year Treasury notes <US10YT=RR> were last up 24/32 in
price to yield 2.2630 percent.
The dollar index <.DXY> was up 0.1 percent after touching its lowest
in a month on Thursday. The dollar was down 0.22 percent against the
yen <JPY=> after earlier trading higher.
"Greece remains highly combustible, and that's a recipe for dollar
strength and risk aversion," said Richard Franulovich, senior
currency strategist at Westpac in New York.
Stocks on Wall Street fell, increasing the decline at the close, but
the key indexes posted their strongest weekly performance in almost
two months.
The Dow Jones industrial average <.DJI> closed down 101.56 points,
or 0.56 percent, to 18,014.28. The S&P 500 <.SPX> slid 11.48 points,
or 0.54 percent, to 2,109.76 and the Nasdaq Composite <.IXIC> lost
15.95 points, or 0.31 percent, to 5,117.00.
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For the week, the Dow rose 0.6 percent, the S&P 500 gained 0.7
percent and the Nasdaq advanced 1.3 percent to a new record high on
Thursday, breaking its last standing milestone from the dot-com era.
In Europe, the pan-regional FTSEurofirst 300 index <.FTEU3> rose
0.34 percent to close at 1,529.65 but Germany's DAX <.GDAXI> fell
0.54 percent.
The main European indexes trimmed gains in late trade as U.S. stocks
reversed some of the previous day's sharp advances and the expiry of
June stock options added to market volatility.
Uncertainty over Greece meant betting on short-term gains or being
long going into weekend were off the table, said Richard Griffiths,
associate director at Berkeley Futures in London.
MSCI's all-country stock index <.MIWD00000PUS> fell 0.26 percent.
Oil fell to $63 a barrel as concern over Greece and a forecast that
U.S. shale oil output would keep growing this year countered signs
of a pickup in demand.
Brent crude <LCOc1> for August slid $1.24 to settle at $63.02, while
U.S. crude for July <CLc1> settled down 84 cents at $59.61 a barrel.
(Editing by Bernadette Baum and Meredith Mazzilli)
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