Forex Pros — European stock markets were mixed on Monday, as shares in the financial sector declined following a warning by ratings agency Standard & Poor’s on a proposal to rollover Greek debt, while markets in the U.S. were to remain closed for a holiday.
During European morning trade, the EURO STOXX 50 shed 0.2%, France’s CAC 40 edged 0.1% lower, while Germany’s DAX 30 eased up 0.15%.&
Standard & Poor’s said earlier Monday that a proposed French debt rollover plan for Greece may place the country in “selective default” under the ratings firm’s criteria.
Over the weekend, euro zone finance ministers authorized a EUR12 billion tranche of bailout funds for Greece and said details of a second aid package for Athens would be finalized by mid-September.
Shares in the financial sector performed poorly, with French lenders BNP Paribas and Societe Generale down 1.3% and 2.1% respectively, while shares in Spain’s second biggest bank BBVA slumped 1.25%.
On the upside, automakers advanced, tracking their Asian counterparts higher, after China’s state-run Xinhua News Agency said that China’s automobile sales growth may recover in the second half of the year after a slowdown in the first six months.
Europe’s largest automaker Volkswagen advanced 1.3%, while French rivals Peugeot and Renault gained 1.1% and 0.9% respectively.
Shares in German utility provider RWE jumped 1.3% after a report in the Sunday Times newspaper that the group may sell its U.K. Npower arm for approximately GBP5 billion in a move to help reduce debt.
In London, the commodity-heavy FTSE 100 advanced 0.25% as shares in raw material producers led gains.
Copper producers Xstrata and Antofagasta rose 0.9% and 1.4% respectively, while shares in oilfield-services provider John Wood Group jumped 2.6% after Goldman Sachs upgraded the stock to “buy” from “neutral”.
On the downside, Barclays saw shares slide 1.1%, while shares in Lloyds Banking Group and Royal Bank of Scotland each declined 0.9%.
Markets in the U.S. were to remain closed for Independence Day.
Forexpros
