LONDON (MarketWatch) — Greek stocks tanked for a third straight day on Wednesday as the country’s new government started to unravel key parts of its bailout agreement, while the broader European markets fell after a mixed batch of corporate updates.
Greece’s Athex Composite index GD, -6.93% slumped 6.2% to 735.10, building on a 3.7% loss from Tuesday and a 3.2% slide on Monday. The index is now trading at its lowest level since September 2012. The yield on 10-year Greek government bonds surged 54 basis points to 10.075%, according to electronic trading platform Tradeweb.
This week’s weakness in Greek assets comes after radical, far-left Syriza won Greece’s general election on Sunday, stirring concerns that the new government could put an end to reforms agreed with international lenders as part of the country’s bailout program.
On Wednesday, Prime Minister Alexis Tsipras held his first cabinet meeting with the new government, telling ministers that “we will push for debt relief,” according to the Guardian. The Tsipras administration also announced plans to freeze privatization plans of the country’s dominant power utility PPC and Piraeus Port, the country’s biggest port, as well as increasing the minium wage.
The moves are seen as the beginning of breaking parts of the bailout agreement, feared to upset the troika of lenders — the European Commission, the European Central Bank and the International Monetary Fund — and ultimately put Greece’s eurozone membership in danger.
Greek stocks were again among biggest fallers in Europe, with Piraeus Bank SA TPEIR, -21.31% off 15%, National Bank of Greece SA ETE, -19.29% down 14%, Eurobank Ergasias SA EUROB, -20.74% 14% lower and Alpha Bank AE ALPHA, -18.11% off 13%.
The rest of Europe: Other European markets were faring better then Greece, although they were still in the red. The Stoxx Europe 600 index SXXP, -0.27% lost 0.5% to 367.03, adding to a 1% decline from Tuesday.
On a more downbeat note, shares of Antofagasta PLC ANTO, -3.68% dropped 3.8% after the U.K.-listed miner published 2015 production and cost targets that were below analysts’ expectations.