European stocks slide amid Greek concerns, earnings misses

European stock markets dropped for the first time in three days on Wednesday, weighed by lingering concerns about Greece’s bailout negotiations and disappointing earnings results.

The benchmark Stoxx Europe 600 index SXXP, -0.52% dropped 0.4% to 407.43, after closing at the seventh-highest level this year on Tuesday.

Greece woes: Greece’s Athex Composite Index GD, +0.13% underperformed most of Europe, trading 1.4% lower at 695.12 and heading for its lowest close in two-and-a-half years. Investors were nervous about Athens’s lack of progress in hammering out a reform deal with its international lenders, which is a prerequisite for Greece receiving the next tranche of bailout money.

The country is at risk of running out of cash in May, unless more money is disbursed from its creditors. If no agreement is reached, Greece could struggle to repay upcoming loans to the International Monetary Fund and the European Central Bank, essentially setting it on a course for a default and a possible exit from the eurozone. Read: Charts show current version of Greek crisis nothing like 2012, so far

The Eurogroup of eurozone finance ministers meets on Friday, but hopes are low that a deal will be reached this time. The head of the Eurogroup, Jeroen Dijsselbloem, said on Tuesday he expects Athens and the lenders to reach an agreement in coming weeks.