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Euro shares lower on G-20 IMF denial; DAX off 0.22%

Published 02/27/2012, 12:22 PM
Updated 02/27/2012, 12:23 PM
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Investing.com – European stocks closed lower Monday as the Group of 20 Nations denied requests from the euro zone to increase the International Monetary Fund’s lending capacity.
 
Near the close of European trade, the EURO STOXX 50  gave back 0.42%, France's CAC 40 fell 0.74%, while Germany’s  DAX dropped 0.22%. Meanwhile, in the U.K. the FTSE 100 slipped 0.33%.
 
Euro zone finance ministers and central bankers met in Mexico and urged G-20 nations to find additional funds that the IMF could provide to the euro zone.
 
IMF Managing Director, Christine Lagarde stated at the meeting that she wants to increase the fund’s lending capacity by USD500 billion to protect the global economy from further shocks.
 
However, the G-20 leaders told the euro zone to provide more financial strength before they would consider providing support.
 
The primary onus fell on Germany, which is already the largest national contributor to the bailouts.
 
German Chancellor, Angela Merkel said there is no need to increase the lending capacity of the euro zone’s bail out fund, pointing to lowered borrowing costs as evidence.
 
In Greek news, Germany’s parliament is holding a vote on the second Greek bailout package in Berlin today.
 
The country needs to decide if it will back plans at a March 1-2 European Union summit to combine rescue funds for the euro zone and create a EUR750 billion financial firewall.
 
On the earnings front, out of 214 euro zone companies reporting earnings, only 94 have beaten estimates casting a lack luster aura on the regions stocks.
 
HSBC gave back 4.5% after missing analyst’s profit estimates.
 
Essar Energy plunged 15% after the Indian power producer had a tax deferral decision overturned by the Supreme Court of India.
 
Nokia dropped 6% after disappointing investors with its latest devices revealed at the Barcelona Mobile World Congress.
 
In bullish news, Porsche climbed 3% on word that Volkswagen is close to a deal to purchase 51% of Porsche’s automotive business.
 
Stocks are trading higher midsession in the United States with the Dow gaining 0.17%, the S&P 500 advancing 0.13% and the Nasdaq climbing 0.18%
 
Investors are awaiting Japanese retail sales, German consumer price inflation,U.S. durable goods and consumer confidence on Tuesday.



 

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