U.S. retail stocks slid in midday trading today as Wall Street resisted the steep declines seen in Europe and Asia after a thumbs-down vote in Greece over bailout terms for the troubled country.
The S&P Retailing Industry Group index lost 0.1 percent to 1,143 after showing gains earlier in the day. The Dow Jones Industrial Average was off 0.2 percent to 17,684 and the S&P 500 shed 0.3 percent to 2,070 with both indices improving from their morning performance.
At the bell in Europe, the FTSE 100 closed down 0.8 percent to 6,535 while the IBEX 35 lost 2.2 percent to 10,540 and the DAX fell 1.5 percent to 10,890. Earlier in Asia, the Hang Seng closed down 3.2 percent to 25,236 while the Nikkei 225 fell 2.1 percent to 20,112. The Shanghai index bucked the declines by adding 2.4 percent to finish at 3,775.
Nigel Green, founder and chief executive officer of deVere Group, categorized the Greek “no” vote as a “revolt,” but also felt it would translate into a buying opportunity once things settle down.
“There will be extensive negotiations taking place right now behind the scene between Athens and its creditors,” said the head of the financial advisory firm. “I suspect there will be a degree of debt relief for Greece, but euro zone leaders will be aware of the considerable consequences of softening their stance too much.”
Green said other “debt-shackled Eurozone countries’ ‘anti’ view” will contribute to widespread uncertainty and further sell-offs as investors “seek perceived safe havens such as gilts [British Government Securities] and U.S. Treasuries.”