Forexpros – European stock markets remained lower on Monday, on track to break a four-day winning streak as markets consolidated gains after European equities hit their highest level since late July on Friday, amid ongoing concerns over the euro zone’s debt crisis.
During European afternoon trade, the EURO STOXX 50 dropped 0.6%, France’s CAC 40 fell 0.8%, while Germany’s DAX 30 retreated 0.75%.
Greece is expected to get an installment of an emergency international bailout later in the day. However, worries about Europe’s debt crisis remain, amid renewed concerns over the fiscal health of Portugal.
Earlier in the day, chief executive of investment fund Pimco said the country will need a second bailout.
Shares in the financial retreated, but were off the lows of the session, with Deutsche Bank shares dipping 0.5%, BNP Paribas down 0.3%, while shares in Italy’s Intesa Sanpaolo fell 1.35%.
German automakers came under pressure, dragged down by weakness in BMW, which lost 1.9% after Goldman Sachs removed the stock from its conviction-buy list.
Elsewhere in the sector, Daimler shares declined 0.9%, while Volkswagen dropped 1.9%.
Meanwhile, shares in French retail giant Carrefour slid 1.5% after authorities in Central China ordered the company to temporarily shut an outlet store in the Henan province on reports that the store sold expired chicken.
On the upside, Dutch package shipper TNT Express rose 1.2% after U.S. shipping giant United Parcel Service said it has reached an agreement to acquire TNT in a deal valued at nearly EUR5.16 billion.
PostNL shares were also higher, up 2.1% after the company agreed to sell its 29.8% stake in TNT following UPS’s takeover bid.
Elsewhere, London’s FTSE 100 declined 0.45%, as financials tracked their European counterparts lower. Barclays shares retreated 1.55%, while Lloyds Banking Group and HSBC Holdings fell 0.7% and 1.1% respectively.
But shares in banking software developer Misys rallied 8.4% after San Francisco-based private equity firm Vista Partners agreed to acquire the company for nearly GBP1.27 billion.
Strong gains in Essar Energy also helped limit losses on the FTSE, with Essar shares soaring 9.6%.
In the U.S., equity markets pointed to a mildly lower open. The Dow Jones Industrial Average futures pointed to a drop of 0.15%, S&P 500 futures eased down 0.15%, while the Nasdaq 100 futures indicated a decline of 0.1% at the open.
Apple shares were expected to be in focus after announcing plans to spend nearly USD45 billion of its USD98 billion cash hoard over three years to offer a USD2.65 a share quarterly dividend and launch a USD10 billion share repurchase program.
Later in the day, the U.S. National Association of Home Builders was to publish a report on home sales.
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