European stock markets opened slightly higher on Thursday, though the mood was one of caution with Greece just days away from a referendum that may decide its future in Europe and traders awaiting US data.
Defiant Greek Prime Minister Alexis Tsipras has urged his country to reject an international bailout deal on Sunday, amid a worsening crisis described as “dangerous’’ by a top Bank of England official but which for now has shown little sign of serious financial contagion to other countries.
The pan-European FTSEurofirst 300 index was up 0.2 per cent in early deals, in line with the euro-zone blue-chip EuroStoxx 50. The wait-and-see attitude was exacerbated by US jobs data due later on Thursday and investor bets that a messy Greek exit from the euro zone will be avoided.
“Greece is taking all the headlines but I don’t think anything will happen before the referendum...Like most people I am waiting for Sunday,’’ said Claus Mose, a trader at Sparinvest in Luxembourg.
There were some outsized moves beyond Athens, however: Sweden’s Electrolux tanked almost 10 per cent after the US filed a lawsuit to stop the owner of Frigidaire and Kenmore brands from buying General Electric’s appliance business.
And Spain’s Amadeus rose 2.3 per cent after saying it would buy Navitaire, a subsidiary of Accenture, for $830 million, to focus mainly on digital services for airline passengers.
While Greece does not loom large on Europe’s corporate radar, the twists and turns of Athens’ stand-off with international creditors have pushed European market volatility to the levels not seen since the end of 2014. June was the worst month for euro-zone equities since 2013.
That said, JPMorgan analysts warned that a Greek exit from the euro zone might have spill-over effects on the region’s banks via losses on their bond portfolios. Excluding possible hedges, Southern European banks would face capital losses and would be the most impacted.