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Euro stocks fall on Greek debt deal failure; DAX drops 0.27%

Published 01/24/2012, 12:32 PM
Updated 01/24/2012, 12:35 PM
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Investing.com - European shares fell from five month highs Tuesday, as Greece failed to agree on a debt swap deal with its creditors.  

After the close of European trade, the EURO STOXX gave back 0.38%, France's CAC 40 fell 0.47%, while Germany's DAX dropped 0.27%. Meanwhile, in the U.K. the FTSE 100 slipped 0.53%.   

Yesterday's rumors of a Greek debt agreement have been proven wrong as finance ministers failed to agree on a debt deal and called for a greater contribution from bondholders.  

Yves Maillot of Robeco Gestions explained to Bloomberg, It seems we are far from an agreement. The problem of solvency of countries remains, along with the Greece situation."  

Officials at the meeting in Brussels yesterday scoffed at putting up more money for Greece, calling on bondholders to provide debt relief.  

However, Greek Finance Minister Evangelo Venizelo remains confident by stating that the Greek government intends to wrap up the debt swap talks with private creditors by February 1.  

In bullish news, a combined measure of European services and manufacturing output expanded in January adding some optimism to the down trading session.  

Banks and financials were the worst performers with Societe Generale dropping 6% and Credit Agricole giving back 4.8 on the session, after having their ratings downgraded to A from A+ by Standard & Poor's.

Petroplus plunged 83% after the Swiss refiner stated that it plans on filing bankruptcy since its credit lines have been suspended.  

While STMicroelectronics gave back 5.7% after projecting its first quarter revenue will drop 10% from the previous three months due to lower wireless sales.  

U.S. stocks were mixed to lower mid session with the Dow30 down 0.33%, the S&P500 off by 0.18% and the Nasdaq easing higher by 0.03%.  

Investors are awaiting U.K. GDP data as well as mortgage approvals and the Bank of England's meeting minutes. In the U.S., housing market data, crude oil stockpiles and the federal fund rate are on the agenda Wednesday.  

In other news, the World Economic Forum begins its annual five day meeting in Davos, Switzerland tomorrow.




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