European stocks lower amid debt concerns; DAX down 0.12%
Investing.com
Published Jan 18, 2012 04:25AM ET
During European morning trade, the EURO STOXX 50 fell 0.12%, France’s CAC 40 declined 0.48%, while Germany’s DAX 30 retreated 0.12%.
Greece's debt swap talks with international creditors were also set to resume on Wednesday, as the country needs to reach a deal in order to secure a new bailout and avoid a default.
Sentiment was also under pressure after Fitch ratings agency said earlier it may downgrade Italy’s credit rate by two notches.
Italy currently holds an A+ rating, but last month, along with Spain, Belgium, the Irish Republic, Slovenia and Cyprus, it was placed on "credit watch negative" by Fitch’s, which means it could face a downgrade within three months.
Financial stocks led losses as shares in German Deutsche Bank dropped 0.60% and Commerzbank tumbled 4.25%, while France’s BNP Paribas and Societe Generale declined 1.20% and 0.71% respectively.
Peripheral lenders were also on the downside, with Portugal’s Banco Espirito Santo sliding 0.79% as the country was preparing to sell up to EUR2.5 billion of treasury bills later in the day, in its biggest debt auction since last year's bailout.
In London, FTSE 100 slipped 0.39%, as U.K. lenders tracked their European counterparts lower.
Shares in the Royal Bank of Scotland plunged 1.97% and Lloyds Banking tumbled 1.08%, while Barclays and HSBC Holdings retreated 0.38% and 0.07% respectively.
Mining giants Bhp Billiton and Rio Tinto were also lower, with shares sliding 0.45% and 1.18%, while copper producers Xstrata and Kazakhmys declined 0.96% and 0.37%.
Meanwhile, Tullow Oil Plc plunged 7.35% after delaying the ramp up of Ghana’s Jubilee field to plateau production.
In the U.S., equity markets pointed to a mixed to higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.01%, S&P 500 futures signaled a 0.02% increase, while the Nasdaq 100 futures indicated a 0.15% gain.
Later in the day, the U.S. was to release official data on producer price inflation and industrial production.
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