Global stocks uneven after Greece deal

A businessman passes a share price board in Tokyo on July 14, 2015.


BEIJING - Global stock markets were uneven Tuesday after Greece agreed to a bailout that will enforce more austerity and China's main index fell after three days of gains driven by a massive government intervention.

In early trading, Germany's DAX fell 0.4 percent to 11,442.02 and France's CAC 40 shed 0.1 percent to 4,993.69. Britain's FTSE 100 fell 0.2 percent to 6,727.06. On Monday, the DAX rose 1.5 percent and the CAC 40 surged 1.9 percent. Britain's FTSE 100 finished up 1 percent.

Wall Street looked set for a tepid start, with both Dow and S&P 500 futures flat. On Monday, the Dow gained 1.2 percent and the S&P rose 1.1 percent. The Nasdaq gained 1.5 percent.

Greece struck a preliminary rescue deal with other European Union governments that should avert an imminent financial catastrophe but guarantees years more hardship for its people. The agreement removes the immediate threat Greece would default on its debts and leave the euro. But in exchange for a three-year loan program, the Greek prime minister has to persuade skeptical legislators to pass tax increases and other key demands into law by Wednesday. Major markets in Europe rallied. Germany's DAX climbed 1.5 percent on Monday and France's CAC 40 surged 1.9 percent. Britain's FTSE 100 finished up 1 percent.

"Whether Greece has walked the plank to an economic and political collapse is still unknown," said Bernard Aw of IG Markets in a report. "While the agreement is definitely very positive for market sentiments, as the prospects of Grexit have significantly reduced, this does not mean the odds are eliminated in the medium term. Firstly, Greek lawmakers still need to pass the measures agreed upon into legislation. Secondly, political instability may surface if Tsipras loses his majority and a unity government is required. We would see a difficult road ahead. For now, calmer waters."

Tokyo's Nikkei 225 rose 1.5 percent to 20,385.33 and Sydney's S&P ASX 200 advanced 1.9 percent to 5,577.40. The Shanghai Composite Index lost 1.2 percent to 3,924.49 after rising in the morning and Hong Kong's Hang Seng declined 0.4 percent to 25,120.91. South Korea's Kospi lost 0.1 percent to 2,059.23 and India's Sensex was up 0.1 percent at 27,980.90.

The main Chinese index rose for three sessions through Monday following frantic government efforts to halt a slide that saw it tumble 30 percent over the past month. The Shanghai Composite Index still is down more than 20 percent from its June 12 peak. State-owned brokerages and government pension funds have pledged to buy stocks, and executives and big shareholders are barred from selling. Hundreds of companies have suspended trading in their shares. Analysts say it is unclear whether the market can hold up once temporary barriers to selling are relaxed.

With anxiety about Greece temporarily abated, investors are likely to shift attention to earnings reports. JPMorgan Chase, Johnson & Johnson and Wells Fargo are due to report Tuesday, followed by Bank of America and Google later in the week. Analysts expect overall earnings to fall 4.5 percent compared with the prior year, according to S&P Capital IQ. That would be the first drop in earnings since 2009.

Benchmark U.S. crude shed $1.04 to $51.16 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 54 cents on Monday to close at $52.20. Brent crude, used to price international oils, declined 85 cents to $57.30 in London after losing 85 cents the previous session to $58.15.

The dollar declined to 123.39 yen from Monday's 123.54 yen. The euro was steady at $1.1003.