Forexpros – European shares traded mixed Wednesday as Greek political fears combined with Spanish bank troubles resulting in the risk off trade, however German exports pushed the DAX higher on the session.
At the close of European trade, the EURO STOXX 50 closed down 0.47%, France’s CAC 40 fell 0.20% but Germany’s DAX gained 0.47%. Meanwhile, in the U.K. the FTSE 100 traded lower by 0.44.
Stocks came under heavy selling pressure amid mounting worries that a fresh round of elections in Greece is inevitable as attempts to form a coalition government meet with failure.
On Tuesday, Alexis Tsipras, the head of Greece’s second-biggest party Syriza, stated that Greece’s financial aid package is null and void, fuelling concerns over a disorderly Greek default or possible exit from the single currency bloc.
Meanwhile, speculation swirled that Spain is set to announce plans to support its banking system. The yield on Spanish 10-year bonds rose above 6% earlier, reflecting investor concerns over holding riskier assets.
Investors also remained concerned over whether French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the crisis could spark tensions with Germany.
Lifting the DAX, official data indicated that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office reported exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
Bankia SA led the selling in Spanish banks after falling 5.4% on a JP Morgan downgrade.
Steel trader, Kloeckner gave back 8.2% after reporting a first quarter loss wider than estimates.
Synthetic rubber maker Lanxess bucked the downtrend by climbing 6.5% after forecasting 10% earnings growth in 2012.
In the United States, shares are trading lower with the Dow off 0.55%, the S&P 500 down 0.79% and the Nasdaq lower by 0.41%
Investors are anticipating Bernanke’s speech, U.S trade balance and initial jobless claims on Thursday. As well as Great Britain’s interest rate decision.
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