European shares are sharply lower this morning, as concerns about Greece’s political instability continue to trouble markets. Those losses are led by the DAX—off 1.1 per cent—and the FTSE 100—off 1.2 per cent.Yesterday, Greek leaders announced that they had been unable to form a new coalition and would have to hold repeat elections. Investors fear that anti-bailout parties led by SYRIZA will gain support, but those elections are still far off—likely June 10 or 17.
A meeting between newly elected French President Francois Hollande and German Chancellor Angela Merkel didn’t inspire confidence, either, as leaders disagreed on important issues.
Outside of the euro, U.K. unemployment beat estimates, falling to 8.2 per cent versus an expected 8.4 per cent. U.S. futures point to a slightly lower open.
The only point of green this morning appears to be in Greece, where the Athens Stock Index is up 1.5 per cent. This follows stiff losses so far this week.