By Sara Sjolin, MarketWatch
Talks are set to resume at lunch time
LONDON (MarketWatch) -- Greek stocks slumped in an otherwise
upbeat European market on Monday, as the country's government
scrambled to reach a reform agreement with international lenders
before it runs out of money.
The Athex Composite Index dropped 1.4% to 758.10, setting it on
track for the lowest close in over a week.
Meanwhile, European stocks more broadly rose on hints of more
monetary easing from China.
Greece's Syriza-led government on Friday submitted a list of
fresh proposals for economic overhauls, but so far officials from
the European Central Bank, the International Monetary Fund and the
EU are not convinced the suggested reforms are detailed enough
(http://www.marketwatch.com/story/greeces-reform-proposals-lack-the-detail-needed-officials-say-2015-03-30).
In February, Athens and the Eurogroup of finance ministers agreed
to a four-month extension to Greece's bailout program, but the
country doesn't actually get the financial aid until the two sides
agree on a range of reforms.
With debt payments due over the next few weeks, the country will
run out of money in April, unless the next portion of bailout cash
is released, economists have suggested. Fitch Ratings late Friday
downgraded Greece's sovereign-debt rating to "CCC" from "B", citing
"uncertain prospects of timely disbursement from official
institutions."
Greece and its lenders spent the weekend locked in talks and
will continue to discuss the reform plans in Brussels at 1 p.m.
local time, or 7 a.m. Eastern Time, according to media reports.
Other markets: Trading in the rest of Europe was more upbeat,
with sentiment getting a boost from Asia, where Chinese stocks
jumped
(http://www.wsj.com/articles/asian-shares-subdued-on-renewed-uncertainty-over-u-s-monetary-policy-1427681704)
on comments more monetary easing could be on its way. The Stoxx
Europe 600 index climbed 1.1% to 399.76, after posting its worst
week since mid-December last week.
France's CAC 40 index gained 1.1% to 5,091.14, Germany's DAX 30
index added 1.5% to 12,043.92, while the U.K.'s FTSE 100 index put
on 0.7% (http://www.marketwatch.com/storyno-meta-for-guid) to
6,904.81.
Data: Spanish consumer prices dropped 0.7% in March, falling at
a slower pace than the 1.2% reported in February. It was also a
smaller decline than the 0.9% drop expected by economists.
Consumer confidence data from the eurozone are due at 10 a.m.
London time, or 5 a.m. Eastern, followed by German inflation
numbers at 1 p.m. London time.
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