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European stocks mixed on Berlusconi talk; DAX up 0.25%

Published 11/07/2011, 08:02 AM
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Investing.com - European stock markets were mixed on Monday, as concerns over Italy's political turmoil briefly eased amid speculation that Prime Minister Silvio Berlusconi may resign before Tuesday's key parliamentary vote.

During European morning trade, the EURO STOXX 50 eased down 0.04%, France’s CAC 40 advanced 0.17%, while Germany’s DAX 30 rose 0.25%.

Market sentiment briefly strengthened following reports in Italian media outlets that Prime Minister Berlusconi is about to step down, ahead of a parliamentary vote on public finances on Tuesday. The reports were subsequently denied by a spokesman for Mr. Berlusconi.

European stocks were also hit after official data showed earlier that German industrial output fell more-than-expected in September.

But the financial sector turned higher, as France's BNP Paribas and Societe Generale saw shares rise 1.12% and 1.45%, while German lender Deutsche Bank advanced 0.42%.

In peripheral lenders, Italian banks Intesa Sanpaolo surged 5.59% and Unicredit jumped 4.25%, whereas Spain's Banco Santander and BBVA tumbled 1.10% and 1.06% respectively. 

Carmakers also turned higher, as shares in Germany's Volkswagen and BMW climbed 2.70% and 2% respectively, while Italy's Fiat soared 5.07%.

In London, FTSE 100 fell 0.41%, as financial stocks remained on the downside.

The Royal Bank of Scotland plummeted 1.39 and Lloyds Banking tumbled 1.10%, while Barclays slumped 0.39%.

Energy stocks also remained down despite trimming earlier losses, as shares in mining giants Rio Tinto and Bhp Billiton fell 0.88% and 0.69% respectively, while British Petroleum saw shares decline 0.83%.

Copper producers Xstrata and Kazakhmys slipped 0.12% and 1.31% respectively.

Elsewhere, U.S. equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a drop of 0.23%, S&P 500 futures signaled a 0.32% fall, while the Nasdaq 100 futures indicated a 0.18% decline.

Also Monday, a report showed that retail sales in the single currency bloc fell more-than-expected in September, dropping 0.7%, far more than expectations for a 0.1% decline.

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