European stocks declined for a second day amid investor concern that Greece won’t reach a debt agreement with creditors in time to make a repayment to the International Monetary Fund.
The Stoxx Europe 600 Index slipped 0.7 percent to 403.83 at 9:34 a.m. in London. Shares fell on Thursday as Greece’s creditors said a deal to unlock rescue aid isn’t imminent. The country had claimed a solution could be reached by Sunday. The benchmark equity gauge is still heading for its best monthly advance since February.
Greece is under pressure to make stronger commitments to overhaul its economy and strengthen public finances before any further funds are released. The Mediterranean nation hasn’t yet said how it will pay almost 1.6 billion euros ($1.75 billion) in IMF payments scheduled for next month, with the first transfer due June 5.
Greece’s ASE Index slid 1.5 percent, for the worst performance of 18 western-European markets. National Bank of Greece SA contributed the most to the drop, with a 2.5 percent fall.
A gauge of auto-related stocks was among the biggest decliners of the 19 industry groups on the Stoxx 600. Daimler AG and BMW AG slid at least 1.4 percent.
Syngenta AG climbed 2.2 percent. The agrochemical maker that rejected an unsolicited $45 billion takeover offer from Monsanto Co., is building up defenses in preparation for a possible higher bid from its U.S. rival, according to people with knowledge of the situation.
Switzerland’s SMI Index slipped 0.4 percent after a report showed first-quarter gross domestic product shrank the most in six years as the strong franc hurt exports.
Investors will also look to a report on U.S. economic growth Friday for clues on the timing of a Federal Reserve interest rate increase. Economists forecast gross domestic product shrank in the first quarter.
