Euro stocks mixed on U.S. job data, chronic euro woes; DAX down 0.71
Published Jan 06, 2012 11:39AM ET
After the close of European trade, the EURO STOXX 50 gave back 0.76%, France's CAC 40 fell 0.32%, while Germany's DAX 30 closed lower by 0.71%. Meanwhile, in the U.K. the FTSE 100 eased higher by 0.36%.
The bearish sentiment started yesterday when Italy's UniCredit stated it will sell shares at EUR1.943 to raise EUR7.5 billion. This is at a 43% discount to yesterday's closing price, excluding the rights value, sending shares in the bank to a 19 year low.
UniCredit's CEO Fredrico Ghizzoni increased the bearish sentiment when he stated the debt crisis is worsening and he expects other banks to follow UniCredit's lead.
In the U.S. employers added 200,000 jobs and the unemployment rate fell to 8.5% suggesting that the world's largest economy is in a growth phase.
Euro area consumer confidence plummeted to more then a 2 year low and unemployment remained at a 13 year high in the beleaguered region weighing on stocks
Carmakers led the decline with BMW falling 1.4% and Daimler giving back 1.4% on the negative consumer data.
Emmanuel Soupre of Neuflize Private Assets explained the situation to Bloomberg, "It's best to remain cautious. The U.S. can't exonerate the rest of the world. The problems in Europe are chronic."
Meanwhile, in bullish news, Mitchell & Butlers climbed 7.4% after Morgan Stanley upgraded the chain to "overweight" from "equal weight".
U.S. stocks traded mixed across the board in midday trading with the Dow Jones Industrial Average slipping 0.33%, the S&P 500 giving back 0.29% and the Nasdaq 100 advancing 0.12%.
Investors are awaiting the German and France meeting start on Monday for signs of hope out of the crisis.
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Written By: Investing.com
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