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Euro stocks mixed on Chinese industrial output, Greece; DAX down 0.16%

Published 02/07/2012, 12:28 PM
Updated 02/07/2012, 12:33 PM
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Investing.com -  European stocks closed mixed Tuesday, on slowing German and Chinese industrial output amid Greek debt talk concerns
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After the close of European trade, the EURO STOXX 50 gained 0.25%, France's CAC 40 advanced 0.18%, while Germany's DAX slipped 0.16%. Meanwhile, in the U.K. the FTSE 100 dropped 0.03%.
 
Greek Prime Minister Lucas Papdemos is gathering the nation’s leaders to reach consensus on the fiscal cuts required for another European Union led bailout package.
 
Greek policy makers have already agreed on cuts equal to 1.5% of the island nation’s gross domestic product. However, they are yet to agree on how to recapitalize banks, reduce wages and ensure the survival of pension funds.
 
Meanwhile, China’s Ministry of Industry and Information Technology stated that the nation’s industrial output will likely slow this quarter due to the euro zone debt crisis and worldwide economic cooling.
 
Adding to the Chinese bearish projection, the International Monetary Fund stated that China’s economic expansion may be cut in half by the euro zone’s debt crisis.
 
This Chinese crisis would warrant significant fiscal stimulus from the nation’s government. The IMF went on to state that China’s growth would drop as much as four percentage points  from the fund’s current projection for an expansion of 8.2% in 2012.
 
German industrial output surprisingly declined the most in three years in December. Production gave back 2.9% from November where is stagnated.
 
Carmakers fell on the negative economic forecasts with BMW slipping 2.7% and Renault giving back 1.3%.
 
The world’s largest watch maker, Swatch fell 4.2% after missing operating profit projections.
 
Luxury company shares followed Swatch lower with Burberry dropping 2.2%, Christian Dior fell 3.2% and Hermes gave back 3.1%.
 
In bullish news, Banco Comercial surged 21% after stating it will sell new shares and draw state funds to boost its capital levels. This is despite the bank posting a full year loss of EUR786.2 million.
 
In the U.S., stocks are higher with the Dow up 0.20%, the S&P 500 gaining 0.17% and the Nasdaq advancing 0.14%.
 
Investors are awaiting Australian consumer sentiment, New Zealand employment, Canadian housing starts, as well as U.S. crude oil inventories on Wednesday.









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