Forex Pros – European stock markets were mixed on Monday, after falling sharply on Friday as ongoing uncertainty over a resolution to Greece’s sovereign debt crisis limited gains.
During European morning trade, the EURO STOXX 50 rose 0.1%, France’s CAC 40 shed 0.15%, while Germany’s DAX 30 edged 0.11% higher.
Markets in France and Germany remained open, despite a public holiday.
On Sunday, Eurogroup chairman Jean- Claude Juncker said a bailout for Greece must include “voluntary” investor participation and meet the approval of central bankers.
However, the European Central Bank remained opposed to any restructuring of Greek sovereign debt, adding to investors’ nervousness over the region’s debt crisis.
Shares in French automaker Peugeot climbed 1.9% after Citigroup raised its rating on the stock to ‘buy’ from ‘hold’, citing the potential for growth in Latin America and prospects for higher earnings.
Shares in fellow French automaker Renault tumbled 2.4% after the stock was downgraded by Citigroup to “hold”, saying that the alliance between Renault and Nissan has been hurt by Japan’s natural disasters.
Shares in lenders advanced, recouping some of Friday’s losses. Commerzbank saw shares climb 1.3%, Italian banking giant Unicredit advanced 1.1%, while shares in Spain’s second largest lender BBVA added 1%.
In London, the commodity-heavy FTSE 100 eased up 0.1% as Eurasian Natural Resources was boosted by a Sunday Times report that Glencore International was considering a GBP12 billion pound takeover bid for the mining company. Eurasian shares rallied 4.3%, while Glencore rose 0.5%.
Shares in copper producer Kazakhmys jumped 2.8% after it signed an agreement over a USD1.5 billion loan from China Development Bank, which will be used to fund a copper project in Kazakhstan.
Meanwhile, Lloyds Banking Group saw shares climb 2.1% following a Sunday Telegraph report that the group will cut 15,000 jobs as part of a plan to save GBP1 billion.
On the downside, Imperial Tobacco Group saw shares slide 1.15% after it lowered its full-year earnings outlook. The cigarette-maker said that operating profit from Spain could be GBP110 million lower than prior expectations.
The outlook for U.S. equity markets was modestly higher. The Dow Jones Industrial Average futures pointed to a gain of 0.1%, S&P 500 futures indicated an increase of 0.08%, while the Nasdaq 100 futures eased up 0.09%.
Later in the day, European Central Bank President Jean-Claude Trichet was to speak at an event in London.
ForexPros.com
