US STOCKS-Wall Street lower after Greek elections

lunes 26 de enero de 2015 10:56 GYT
 

* Instability worries follow Greek election outcome

* Rock-Tenn and MeadWestvaco rally, set to merge

* Indexes down: Dow 0.5 pct, S&P 0.4 pct, Nasdaq 0.4 pct (Updates to open of U.S. trading)

By Ryan Vlastelica

NEW YORK, Jan 26 (Reuters) - U.S. stocks fell on Monday after a decisive Greek election victory by the Syriza party spurred concern over fresh instability in the euro zone, even as the possibility of Greece leaving the bloc was considered remote.

The leftist Syriza party looked set to take on Greece's international lenders, with leader Alexis Tsipras pledging to end five years of austerity and renegotiate Greece's debt agreements. Investors were concerned that potential conflicts with other euro zone governments could put more strain on the currency bloc.

While Greece is a relatively small economy to which the United States has limited direct exposure, extended volatility in the region could hurt multinational companies. If the euro continues to weaken against the dollar, that could be a headwind for earnings.

"The ongoing display of angst is that Greece removes itself from the euro-zone. It's the unknown about things breaking up," said Frank Davis, director of sales and trading at LEK Securities in New York. "We consider that a remote possibility, but it makes sense for us to take a pause and reassess our fundamentals."

European shares were volatile after the election, falling as much as 0.4 percent before rising by 0.5 percent. They last traded up 0.2 percent. U.S.-listed shares of the National Bank of Greece fell 10 percent to $1.51 in heavy trading.   Continuación...