European stocks slump on Greek worries

Europe's main stock markets slumped Friday as investor worries intensified over the plight of Greece and they took profits after having pushed indices to highs levels, analysts said.

Frankfurt's DAX 30 index tumbled 2.58 percent to 11,688.70 points, while the CAC 40 in Paris slumped 1.55 percent to 5,143.26 points.

London's benchmark FTSE 100 index ended the day down 0.93 percent to 6,994.63 points.

Madrid shed 2.17 percent and Milan 2.40 percent.

"Global equity markets experienced a heavy sell-off during the last trading session of the week as fairly tepid economic data and renewed concerns regarding Greece?s debt issues continue to dominate the markets, weighing heavily on market sentiment," said analyst Myrto Sokou at Sucden Financial Research.

With London and Frankfurt recently hitting record highs and Paris touching seven-year peaks, investors had profits to take.

The DAX tumbled 5.6 percent over the week, but was showing a 19.2 percent gain since the start of the year. The FTSE, which slid 1.3 percent over the week, was up 6.5 percent from the start of the year. The CAC is up 20.4 percent this year despite losing 1.9 percent over the past week.

In foreign exchange activity, the European single currency rose to $1.0777 from $1.0761 at the fixing late in New York on Thursday.

- Greece remains in spotlight -

"Another day brings another story about Greece, and once again the inability of the Greek finance minister to employ a light touch has spooked markets," said IG analyst Alastair McCaig.

"Bond markets, normally immune to the volatility that equities frequent, have seen Greek yields skyrocket as the chances of them defaulting grow ever more likely."

Volumes were lower than usual, analysts said, owing to a global breakdown of Bloomberg trading terminals.

The terminals -- used by subscribers to make trades using real-time developments in business and finance -- were struck by a "global network problem", the company's technical department said Friday.

"Bloomberg... has been hit with technical issues this morning and as a consequence trading volumes are a little lower," added McCaig.

Meanwhile, top European officials and Greece's finance minister were forced to play down fears that the country was poised to exit the eurozone, after the IMF rejected suggestions that Athens would postpone loan repayments.

Greek bond yields have soared to their highest point since 2012 as concerns mounted that the country would default on billions of dollars in debt and be forced to leave the euro area, an event which could shake global financial markets.

"In recent weeks the attitude of EU and IMF creditors towards Greece appears to have increasing hardened," noted Rabobank analyst Jane Foley.

"In the early days of the Syriza government, Finance Minister (Yanis) Varoufakis had hoped for some sympathy for its socialist idealism from the governments of France and Italy.

"This week French PM (Manuel) Valls rebuffed Greece's position by calling on its government to quickly draw up a more thoroughgoing list of reforms. German attitudes have also toughened."

Varoufakis has meanwhile insisted Athens remains committed to the euro area, despite rising talk of a Greek exit or Grexit.

Despite new worries about Greece's eurozone future, the euro managed to hold up, while the dollar dipped as the chances of a summer US interest rate hike eased on disappointing jobs and housing data.

- Chinese stocks soar -

In Asia, Shanghai equities extended their rally Friday on hopes for new economy-boosting measures from China, but Hong Kong and most other markets retreated after more weak US data and losses on Wall Street.

Shanghai jumped 2.20 percent but Hong Kong slid 0.31 percent.

Elsewhere, Tokyo tumbled 1.17 percent, Sydney sank 1.28 percent and Seoul added 0.17 percent.

A string of poor Chinese indicators have fuelled a rally in Shanghai's benchmark index over the past year and now mainland investors are turning their attention to Hong Kong, buying what they consider cheap assets.

US stocks followed European equities sharply lower as worries about Greece's talks with creditors hung over markets.

The Dow Jones Industrial Average fell 1.14 percent to stand at 17,850.73 points in midday trading.

The broad-based S&P 500 dropped 1.01 percent to 2,088.63, while the tech-rich Nasdaq Composite Index fell 1.43 percent to 4,936.17.