Euro stocks mixed on Moody review, Greece; DAX down 0.09%
Published Feb 16, 2012 12:33PM ET
Updated Feb 16, 2012 01:38PM ET
Investing.com – European stocks closed mixed Thursday, after rating agency Moody’s said it may downgrade 17 banks and security firms and further Greek bailout delays.
After the close of European trade, the EURO STOXX 50 gave back 0.18%, France's CAC 40 added 0.09%, while Germany's DAX fell 0.09%. Meanwhile, in the U.K. the FTSE 100 slipped lower by 0.12%.
Moody’s stated it is reviewing the credit ratings of 17 banks ans security firms that may result in credit downgrades. This news comes days after the credit rating agency slashed the ratings of six euro zone nations.
European leaders are seeking more control over how the Greek aid package will be spent as the island nation faces default over a March 20 bond payment.
Policy makers will discuss the second Greek bailout package on February 20.
In bond auction news, Spain and France sold EUR14.2 billion in their first debt auctions since the Moody downgrade. The auctions were met with strong demand despite the downgrade but Spanish borrowing costs climbed, and France’s costs declined.
Meanwhile, bullish news from the U.S. supported equities as claims for jobless benefits fell to the lowest level in four years.
In addition, U.S. housing starts climbed 1.5% beating analysts’ median estimates and Philadelphia manufacturing expanded in February, adding to the bullish U.S. sentiment.
Banks Banco Santander and Banco Bilbao Vizcaya Argentaria gave back 2.6% and 4.1% respectively.
The world’s largest maker of power distribution equipment, ABB gave back 3.6% after reporting less than expected fourth quarter profit.
Miner Rio Tinto Group dropped 1.3% on dropping copper prices.
In bullish news, Cap Gemini soared 7.9% after forecasting higher operating profit margin in 2012.
During mid session U.S. trade, the Dow traded higher by 0.87%, the S&P 500 gained 0.58% and the Nasdaq added 0.87%.
Investors are awaiting U.S. and Canadian consumer price inflation numbers as well as Bank of Japan’s policy meeting minutes on Friday.
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Written By: Investing.com
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