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European stocks decline amid Greece concerns; Dax down 1.29%

Published 03/26/2015, 04:49 AM
© Reuters.  European stocks drop despite upbeat Gfk report as Greece worries weigh
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Investing.com - European stocks were lower on Thursday, despite positive consumer climate data from Germany as fresh concerns over Greece's debt woes weighed broadly on equity markets.

During European morning trade, the EURO STOXX 50 retreated 0.88%, France’s CAC 40 declined 0.67%, while Germany’s DAX 30 tumbled 1.29%.

European equities came under pressure after Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month.

Athens had appealed for the European Financial Stability Facility to return €1.2 billion it said it had overpaid when it transferred bonds intended for bank recapitalization this month.

The Greek government is expected to present a detailed list of proposed reforms to its eurozone partners by next Monday.

Earlier Thursday, data showed that the Gfk German consumer climate index was set to rise to 10.0 in April from a reading of 9.7 the previous month, compared to expectations for an uptick to 9.8.

Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) dropped 0.62% and 1.02%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) retreated 0.92% and 1.42%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) tumbled 1.04% and 1.22% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) slid 0.28% and 0.52%.

Elsewhere, Havas (PARIS:HAVA) plunged 6.54% after Group Bollore sold a 22.5% stake in the French advertising company.

Airbus Group (PARIS:AIR) added to losses, with shares dropping 0.59% after the aircraft manufacturer said it sold additional shares in Dassault Aviation SA, cutting its holding in the company to 24.6%.

In London, FTSE 100 slid 0.38%, as U.K. lenders tracked their European counterparts lower.

Shares in Barclays (LONDON:BARC) edged down 0.16% and the Royal Bank of Scotland (LONDON:RBS) declined 0.62%, while Lloyds Banking (LONDON:LLOY) lost 0.70%. HSBC Holdings (LONDON:HSBA) overperformed however, rising 0.15%.

The Royal Bank of Scotland said earlier that investors agreed to pay $3.21 billion in a public offering for a 25% stake in its U.S. unit Citizens Financial Group Inc.

In the mining sector, stocks were broadly higher. Shares in Bhp Billiton (LONDON:BLT) rose 0.38% and Rio Tinto (LONDON:RIO) gained 0.46%, while Glencore Xstrata (LONDON:GLEN) advanced 0.58% and Fresnillo (LONDON:FRES) surged 3.08%.

Energy companies were also on the upside, as oil and gas major BP (LONDON:BP) rallied 1.77% and Tullow Oil (LONDON:TLW) climbed 1.87%, while Petrofac (LONDON:PFC) led gains on the commodity-heavy index with shares soaring 3.29%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.56% decline, S&P 500 futures signaled a 0.50% loss, while the Nasdaq 100 futures indicated a 0.69% drop.

Later in the day, the U.S. was to release the weekly report on jobless claims.

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