Euro stocks mixed on IMF lending plan, Greek debt deal; DAX up 0.34%
Published Jan 18, 2012 12:43PM ET
After the close of European trade, the EURO STOXX 50 gave back 0.25%, France's CAC 40 slipped 0.15%, while Germany's DAX advanced 0.34%. Meanwhile, in the U.K. the FTSE 100 added 0.15%.
The IMF aims to bolster its resources after identifying a potential need for USD1trillion in financing in future years. However, the fund will not comment further until its members are consulted.
Bruce Richards of the Greek creditor committee told Bloomberg, "Greece is near a deal with its private creditors that would provide the creditors cash and securities with a market value of approximately 32 cents per euro of government debt."
The World Bank slashed its global growth forecast by the most in 36 months, explaining that it forecasts the world economy to grow at 2.5% in 2012, down from a June estimate of 3.6%.
The World Bank added that the euro zone may contract 0.3% and cut its projection for U.S. growth to 2.2% from 2.9%.
In addition, the German government trimmed its 2012 forecast to 0.7% from a previous 1%.
Meanwhile, Germany sold two year notes at a record low yield today and Portugal hit its targeted amount in a sale of 3, 6, and 11 month treasury bills.
U.S. industrial production climbed 0.04% in December just missing the consensus estimate of a 0.05% increase.
The world's largest publicly traded hedge fund, Man Group, advanced 6.8% after saying it will cut jobs and reduce pay with the goal of reducing costs.
In bearish news, Commerzbank gave back 1.5% as rating agency Moody's lowered the bank's financial strength rating to D+ from C-.
Tullow Oil Plc gave back 4.6% after delaying full production from its Ghana field for at least a year.
ThyssenKrupp slipped 1.7% on rumors that the steelmaker may cut its earnings forecast.
U.S. stocks were higher mid session with the Dow30 up 0.38%, the S&P500 climbing 0.46% and the Nasdaq advancing 0.77%.
Investors are awaiting U.S. building reports and unemployment claims while the European Central Bank is to produce a report on the current account followed by its monthly bulletin on Thursday.
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Written By: Investing.com
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