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Euro shares down on Bernanke testimony; DAX off 0.46%

Published 02/29/2012, 12:42 PM
Updated 02/29/2012, 12:45 PM
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Investing.com -  European shares closed lower Wednesday, despite ECB’s liquidity injection, on Fed Chief Ben Bernanke failing to signal further monetary easing at his testimony to Congress
 
Near the close of European trade, the EURO STOXX 50 gave back 0.30%, France's CAC 40 slipped 0.04%, while Germany’s DAX dropped 0.46%. Meanwhile, in the U.K. the FTSE 100 plunged 0.96%.
 
European stocks sold off, from earlier gains, as Federal Reserve Chairman Ben Bernanke failed to signal further monetary easing in the world’s largest economy.
 
Bernanke stated that keeping monetary stimulus steady was warranted despite falling jobless claims and rising oil prices potentially increasing inflation. 
 
The Fed Chief added, policy makers believe that “sustaining a highly accommodative stance for monetary policy is consistent with promoting both objectives” of the Fed for stable prices and maximum employment.
 
Sparking the early session rally, the European Central Bank said it will lend 800 financial institutions EUR529.5 billion for 1092 days. This is higher than the estimated loan level of EUR470 billion easing systematic risk fears.
 
In additional bullish news, European Union Competition Commissioner, Joaquin Almunia stated that EU leaders may consider relaxing budget deficit targets to take into consideration economic growth.
 
Meanwhile, in the U.S., the economy expanded 3% beating forecasts.
 
Hochtief gave back 5% after saying it doesn’t plan on paying a dividend for 2011 and pretax profits will be below 2010 numbers.
 
British Sky Broadcasting fell 2.3% after chairman James Murdoch stepped down as executive chairman of News Corp due to a wire tapping scandal,
 
Swiss Life climbed 2.2% after declaring full year dividend of FR4.50 and stating it plans on expanding market position.
 
Erste Group Bank added 4.3% as fourth quarter net income beat analyst estimates.
 
Stocks are trading higher midsession in the United States with the Dow gaining 0.28%, the S&P 500 advancing 0.36% and the Nasdaq easing higher by 0.15%

Investors are awaiting U.S. manufacturing activity and Bernanke’s second day of testimony, euro zone preliminary consumer price inflation and manufacturing activity, as well as Switzerland’s GDP on Thursday.



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