Investing.com - European stock markets closed higher Wednesday, despite concerns over Greece’s ongoing debt woes and the looming fiscal cliff crisis in the U.S.
At the close of European trade, the EURO STOXX 50 gained 0.13%, France’s CAC 40 moved higher by 0.37%, while Germany’s DAX 30 added 0.15%.
Although international lenders agreed on a plan to cut Greek debt, which will allow the country to secure more financial aid and avoid a default, market skepticism grew over a lack of detail on how Athens will implement the reforms needed to meet its new targets.
Meanwhile, traders continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Corporate leaders including Goldman Sachs Chief Executive Officer Lloyd Blankfein will meet with President Barack Obama later Wednesday to discuss the crisis.
House Speaker John Boehner plans to meet separately today with Blankfein and other U.S. business leaders.
Senate Majority Leader Harry Reid spooked investors Tuesday after saying that there had been “little progress” made toward reaching a deal by the end of the year.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Shares in the financial sector were among the biggest losers, with Germany’s Deutsche Bank and Commerzbank down 2.3% and 1.5% respectively, while France’s BNP Paribas and Societe Generale lost 1.5% apiece.
Peripheral lenders were also lower, with Spain’s BBVA dropping 1.6% and Italy’s Unicredit falling 1.4%.
Elsewhere, in London, the FTSE 100 declined 0.2%, tracking losses in other markets.
Lloyds Banking Group slumped 1.9%, Royal Bank of Scotland shares fell 1%, while Barclays edged 0.7% lower.
Miners also contributed to losses, with copper miners Xstrata and Anglo American falling 1.5% and 1% respectively.
On the upside, United Utilities saw shares climb 2.5% after the firm reported a rise in six-month profit and said it’s on track to meet its regulatory targets.
The Dow Jones Industrial Average followed higher up 0.33%, while the S&P500 slipped 0.26% and the tech heavy Nasdaq added 0.15%.
Traders are anticipating the U.S. GDP and continuing jobless claims on Thursday.