Investing.com - European stocks were mixed on Monday, as earlier optimism linked to weekend elections in Greece began to subside, while surging borrowing costs in Spain and overall debt concerns in the euro zone continued to weigh.
During European afternoon trade, the EURO STOXX 50 fell 0.24%, France’s CAC 40 edged up 0.11%, while Germany’s DAX 30 climbed 0.76%.
Market sentiment strengthened earlier, after political parties supporting Greece's international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro.
Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday's election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country's lenders.
But investors remained concerned over the handling of Greece’s financial crisis after Germany’s Foreign Minister said the substance of Athens’ reform program remained non-negotiable.
Meanwhile, the yield on Spanish 10-year bonds climbed earlier to a euro-era high of 7.13%, above the critical 7% threshold which prompted bailouts in Greece, Ireland and Portugal.
Financial stocks turned broadly lower, led by Italian lender Intesa Sanpaolo, down 5.57%, while France’s BNP Paribas and Societe Generale tumbled 3.12% and 2.70%.
Germany’s two biggest lenders, Deutsche Bank and Commerzbank also erased earlier gains, as shares retreated 0.32% and 3.73% respectively.
Meanwhile, Nokia saw shares surge 4.17%. Moody’s slashed the company’s credit rating to “junk” on Friday, after the Finnish cellphone maker cut 10,000 more jobs and forecast a wider-than-expected loss, citing worries about its cash position and slow sales of new Windows phones.
Auto makers were also on the upside, as shares in BMW climbed 2.11% and Daimler advanced 1.85%, while Volkswagen rallied 1.66%.
In London, FTSE 100 advanced 0.44%, boosted by gains in mining stocks, while industry data showed that house prices in the U.K. rose 1% in June.
Mining giants Rio Tinto and Bhp Biliton remained among the session’s top gainers, climbing 1.65% and 1.32% respectively, while copper producers Xstrata and Kazakhmys turned lower, falling 1.46% and 0.42%.
Evraz mining company pushed higher, on the other hand, rallying 3.06%, shrugging off reports the firm is being sued by a Swiss business partner over a USD 500 million port infrastructure project which turned sour.
Elsewhere, U.K. lenders were mixed. Shares in the Royal Bank of Scotland plummeted 3.31% and Lloyds Banking dropped 2.40%, while Barclays declined 0.53% and HSBC Holdings added 0.41%.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.28% decline, S&P 500 futures signaled a 0.22% fall, while the Nasdaq 100 futures indicated a 0.05% rise.
Later in the day, a G-20 summit was due to begin, amid hopes it could produce fresh measures to combat the crisis in Europe.
In a statement, G-20 leaders said it was in "all our interests" for Greece to remain in the euro zone while respecting its international bailout commitments.
During European afternoon trade, the EURO STOXX 50 fell 0.24%, France’s CAC 40 edged up 0.11%, while Germany’s DAX 30 climbed 0.76%.
Market sentiment strengthened earlier, after political parties supporting Greece's international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro.
Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday's election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country's lenders.
But investors remained concerned over the handling of Greece’s financial crisis after Germany’s Foreign Minister said the substance of Athens’ reform program remained non-negotiable.
Meanwhile, the yield on Spanish 10-year bonds climbed earlier to a euro-era high of 7.13%, above the critical 7% threshold which prompted bailouts in Greece, Ireland and Portugal.
Financial stocks turned broadly lower, led by Italian lender Intesa Sanpaolo, down 5.57%, while France’s BNP Paribas and Societe Generale tumbled 3.12% and 2.70%.
Germany’s two biggest lenders, Deutsche Bank and Commerzbank also erased earlier gains, as shares retreated 0.32% and 3.73% respectively.
Meanwhile, Nokia saw shares surge 4.17%. Moody’s slashed the company’s credit rating to “junk” on Friday, after the Finnish cellphone maker cut 10,000 more jobs and forecast a wider-than-expected loss, citing worries about its cash position and slow sales of new Windows phones.
Auto makers were also on the upside, as shares in BMW climbed 2.11% and Daimler advanced 1.85%, while Volkswagen rallied 1.66%.
In London, FTSE 100 advanced 0.44%, boosted by gains in mining stocks, while industry data showed that house prices in the U.K. rose 1% in June.
Mining giants Rio Tinto and Bhp Biliton remained among the session’s top gainers, climbing 1.65% and 1.32% respectively, while copper producers Xstrata and Kazakhmys turned lower, falling 1.46% and 0.42%.
Evraz mining company pushed higher, on the other hand, rallying 3.06%, shrugging off reports the firm is being sued by a Swiss business partner over a USD 500 million port infrastructure project which turned sour.
Elsewhere, U.K. lenders were mixed. Shares in the Royal Bank of Scotland plummeted 3.31% and Lloyds Banking dropped 2.40%, while Barclays declined 0.53% and HSBC Holdings added 0.41%.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.28% decline, S&P 500 futures signaled a 0.22% fall, while the Nasdaq 100 futures indicated a 0.05% rise.
Later in the day, a G-20 summit was due to begin, amid hopes it could produce fresh measures to combat the crisis in Europe.
In a statement, G-20 leaders said it was in "all our interests" for Greece to remain in the euro zone while respecting its international bailout commitments.