European stocks mixed amid IMF reports; DAX up 0.33%
Investing.com
Published Jan 18, 2012 07:40AM ET
During European afternoon trade, the EURO STOXX 50 rose 0.14%, France’s CAC 40 edged down 0.02%, while Germany’s DAX 30 added 0.33%.
According to media reports, the IMF wants to reach an agreement on enlarging its lending capacity to USD1 trillion, from the existing USD385 billion at a meeting of the Group of 20 nations due to take place at the end of February.
Sentiment came under pressure earlier after Fitch’s warned that Italy could face a two-notch downgrade.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
Financial stocks turned sharply higher, led by France’s Societe Generale, surging 4.88%, and Dutch lender ING Group, with shares climbing 2.41%, while Germany’s Deutsche Bank added 1%.
Portuguese lenders Banco Espirito Santo and Banco Bpi also added to gains, with shares jumping 2.36% and 2%, 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.
Elsewhere, French electricity company EDF climbed 0.80% on reports France’s electricity prices could jump 30% by 2016.
In London, FTSE 100 was flat after data showed that the unemployment rate in the U.K. unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
Financial stocks were mixed, with shares in Lloyds banking advancing 0.98% and HSBC Holdings adding 0.63%, while the Royal Bank of Scotland declined 0.44%
Mining giant Bhp Billiton gained 0.62%, while copper producers Xstrata and Kazakhmys rose 0.66% and 0.83% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.15%, S&P 500 futures signaled a 0.19% increase, while the Nasdaq 100 futures indicated a 0.35% gain.
Later in the day, the U.S. was to release official data on producer price inflation and industrial production.
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