European shares lower despite optimistic Italian auction; DAX down 2.01%
Published Dec 28, 2011 12:38PM ET
After the close of European trade, the EURO STOXX 50 was lower by 1.54% France's CAC 40 gave back 1.03%, while Germany's DAX 30 fell 2.01%.
Meanwhile, in the U.K. the FTSE 100 dropped 0.10%.
Euro shares opened higher on Italian optimism. Italy sold EUR9 billion six month Treasury bills at half the yield it agreed to pay at the auction last month. However, this successful auction raised concerns about the longer term bond auction on Thursday.
Ken Polcari of ICAP equities told Bloomberg, "Are they (Italy) going to be lucky enough tomorrow as they were today with the short term money? I think the market is telling you it’s a little bit concerned."
A report from the European Central Bank indicated that the ECB's balance sheet was larger than expected counteracted the Italian auction success
BMW gave back 3.2% while miners Xstrata and Salzgitter dropped 2.2% and 2.6% respectively
European retailers bucked the bearish trend after a report showed U.K. shopper numbers for Boxing Day soared 22% from a year ago. Tesco gained 2.5% and Home Retail Group added 3.4% on the bullish news.
U.S. stocks were lower across the board in midday trading with the Dow Jones Industrial Average falling 1.03%, the S&P 500 giving back 1.18% and the Nasdaq 100 dropping 1.10%.
Investors are awaiting the Initial Jobless Claims out the U.S. and the long term Italian bond auction on Thursday.
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Written By: Investing.com
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