European stock markets fell yesterday, reversing early gains, with attention on Greece where bond rates surged and equities slumped as the new anti-austerity government seeks to renegotiate the country's debt. The technology sector was also in focus after Apple's record earnings were posted overnight. London's benchmark FTSE 100 index of top companies dipped 0.06 percent to stand at 6,807.52 points around midday in the British capital. Frankfurt's DAX 30 slipped 0.13 percent to 10,615.01 points and the CAC 40 in Paris shed 0.36 percent to 4,607.78 compared with Tuesday's close. The euro dropped to $1.1375 from $1.1380 late in New York on Tuesday. Markets had closed lower on Tuesday, weighed down by anxiety over Greece's new anti-austerity leadership and unexpectedly disappointing U.S. economic data that sent Wall Street sinking. "Granted, the so-called 'Grexit' fears are back as the new Greek prime minister [Alexis] Tsipras seems determined to renegotiate the bailout terms for his country in a bid to relieve austerity. This has driven the yield on the benchmark government debt above 10 percent which is the highest since early January." Over the weekend in Greece, voters handed a decisive victory to radical left party Syriza, putting the country on a collision course with the EU and international creditors over its bailout. It also gave rise to fears that the country could exit the eurozone, what is being dubbed a "Grexit." The new left-wing government will halt the privatization of the country's biggest port Piraeus, which China's COSCO group has bid for, an official in charge of the process said yesterday. Greece's previous conservative government had planned to sell 67 percent of the port authority. The tender had a March deadline for the submission of offers. The Athens stock market slid 6.4 percent in Wednesday trading, as the rate of return on 10-year Greek bonds rose above the symbolic barrier of 10 percent.
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