European Markets Pare Gains on Greek Meeting, End Week Higher

0
143

European Markets Pare Gains on Greek Meeting, End Week Higher

European stocks pared strong morning gains on the lackluster conclusion to the meetings between Greece and her international creditors to end the country’s debt troubles but the stocks remained on course to extend their weekly gains.

The benchmark Stoxx 600 index advanced 0.3% to 408.2 points to step back from bigger gains earlier in the session with oil and gas, technology, consumer services and health care stocks turning lower.

The Index is now 1.2% higher on the week, extending its weekly gains to three in four weeks, and more than 19% higher on the year having last reached its record close on April 15.

Shares had advanced by more than 0,7% earlier in the session driven by earning releases and positive economic data from Germany where a key gauge of German business sentiment beat expectations jumped to a ten-month high in April.

HSBC jumped 1.9% after announcing that it was considering moving its headquarters out of the UK.

Renault SA jumped 3.7% after announcing that its sales grew by 14%.

European stocks had sold off during the previous session after data showed that the Euro-zone manufacturing output grew at a slower pace in April.

“The market is just making up the losses during the week,” Christian Zogg, who manages the equivalent of about $10 billion at LLB Asset Management AG in Vaduz, Liechtenstein, told Bloomberg.

“Yesterday, the market was a bit disappointed by the various PMIs, but on the other hand, the result season looks quite OK.”

Greece’s benchmark Athens Composite advanced 3.3% at 751.6 points but dipped slightly after a meeting of Euro-zone officials failed to agree on economic reforms needed for the country to continue receiving more bailout funds.

However, despite signs of fraying tempers, comments made by the officials at the conclusion of the meeting all suggested that a deal would be reached.

“Our message is very clear, we must accelerate starting today, always accelerate and intensify the efforts,” EU Economic Affairs Commissioner Pierre Moscovici, told Yahoo News.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com