Monday 3:09am EDT
TOKYO, June 27 (Reuters) - The Nikkei stock average dropped one percent on Monday, as euro zone debt worries weighed on markets before a crucial parliamentary vote in Greece this week, with investors fretting over fallout from the debt crisis in the banking system.
Bank shares came under pressure as their peers in Europe were pummeled on worries they could suffer huge losses should Greece default, though they pared some declines in late trade on brokerage reports that a new capital requirement rule proposed by an international watchdog may be less stringent than previously thought.
"You still have Greek worries and rising interest rates in emerging markets seriously souring the mood in the markets," said Mattia Ciancaleoni, director of equity sales at Citigroup.
Monday 7:12am EDT
LONDON, June 27 (Reuters) - Strength in banks lifted Britain's top share index on Monday, as analysts at Nomura said the sector was well placed to rally on hopes of positive news surrounding Greece's debt crisis over the next few days.
Greece's parliament begins on Monday debating measures to increase taxes and cut fiscal spending, without approval of which the European Union and International Monetary Fund say they will not disburse the fifth tranche of Greece's 110 billion euro ($158 billion) bailout programme.
"The market is pricing in a default scenario in Greece, while we expect a more benign outcome," nomura analyts Ian Scott said. "With relatively positive news over the past few days, we think financials, especially the banks, are placed to rally."
So that’s all clear then.
