European stocks fall on ECB loans; DAX down 0.02%
Investing.com
Published Dec 21, 2011 07:47AM ET
During European afternoon trade, the EURO STOXX 50 fell 0.15%, France’s CAC 40 declined 0.37%, while Germany’s DAX 30 inched down 0.02%.
The ECB offered EUR489.2 billion in an auction of three-year loans, much higher than estimated, with a total of 523 bidders, in an attempt to avert a liquidity crunch in the euro zone.
It is hoped that the funds may also be used by lenders to purchase the sovereign debt of indebted euro zone members, easing pressure on borrowing costs.
The amount allotted was the largest ever for a longer-term refinancing operation by the ECB and indicated that lenders believe funding problems are likely to persist into 2012.
European lenders remained the top gainers as shares in France’s BNP Paribas surged 2.63% and Credit Agricole jumped 1.04%, while German Deutsche Bank and Commerzbank soared 2.41% and 3.16% respectively.
Earlier Wednesday, Fitch Ratings lowered its outlook on five French lenders to “negative”, including Societe Generale whose shares were still up 0.29%.
On the downside, tech shares posted sharp losses after earnings from U.S. major Oracle fell short of forecasts for the first time in a decade. French group Capgemini tumbled 3.01% after the news.
In London, FTSE 100 retreated 0.21% after the BCE operation and the Bank of England’s December meeting minutes showed that policymakers saw little change in the balance of risks to growth.
Shares in Lloyds Banking soared 4.40% and the Royal Bank of Scotland jumped 3.51%, while Barclays and HSBC Holdings climbed 3.43% and 1.20% respectively.
Elsewhere, mining giants Rio Tinto and Bhp Billiton soared 1.30% and 1.54%, while copper producers Xstrata and Kazakhmys jumped 1.31% and 1.92%.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a rise of 0.02%, S&P 500 futures signaled a 0.14% drop, while the Nasdaq 100 futures indicated a 0.06% fall.
Later in the day, the euro zone was to produce data on Belgium’s business climate.
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Written By: Investing.com
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