European Markets Decline, Spain Bad Loans Ratio Falls to 6.1%

Nigel Thomas
18 May, 2011
New York City

European markets traded sideways as resource linked stocks gained but banks were under pressure. European Union officials intensified campaign and said Greek default is not an offensive. Bank of Spain said bad loan ratio declined to 6.11% in March from 6.2% in February.

[R]2:00 PM Frankfurt – European markets traded sideways as resource linked stocks gained but banks were under pressure. European Union officials intensified campaign and said Greek default is not an offensive. Bank of Spain said bad loan ratio declined to 6.11% in March from 6.2% in February.[/R]

European markets inched higher as European Union officials launch an offensive and said restructuring Greek debt is not an option.

The EU officials began an aggressive campaign after the International Monetary Fund said on Wednesday that unless Greece accelerates its reforms any additional funds will not deliver desired results.

CAC 40 index increased 0.5% or 18.47 to 3,959.95 and DAX 30 index gained 9.99 or 0.1% to 7,266.74.

Seasonally adjusted construction activities in March decreased 0.3% in euro area and rose 1.9% in the EU27 compared to a month ago.

In February, activities in EU area decreased 0.8% and rose 1.4% in the wider EU27 region.

Bank of Spain reported bad loan ratio declined to 6.11% in March from 6.20 in February when it reached the peak last seen since September 1995.

The bad loans measure included loans issued by all banks, financial cooperatives and retail credit cards declined to €1.069 billion to €111.511 billion in March.

Stock Movers

Deutsche Bank increased 1.5% after Chief Executive Josef Ackermann expects company to achieve pre-tax operating profit between €11 billion and €12 billion within two to three years.

Resources linked stocks traded higher. BP Plc increased 0.7% to 437 pence, Total SA gained 0.6% to €40.59 and Xstrata inched higher 1.5% to 1,407 pence.

Santander is looking to list its Argentine unit and raise as much as $1 billion according to media reports in Spain.