European Markets Await Greek Decision; Heineken Net Falls

Devan Biswas
15 Feb, 2012
New York City

European markets traded sideways as Greek bailout decision got delayed one more time. European leaders urged China to participate in the euro zone bailout funds along with Russia and other oil rich nations. Heineken 2011 earnings fall.

[R]5:45 PM Frankfurt – European markets traded sideways as Greek bailout decision got delayed one more time. European leaders urged China to participate in the euro zone bailout funds along with Russia and other oil rich nations. Heineken 2011 earnings fall.[/R]

European markets traded sideways as Greek bailout decision gets delayed one more time and gross domestic product in the 17-nation euro zone and the 27-member EU region declined 0.3%.

The euro zone economy shrank for the first time in December quarter from the second quarter in 2009, according to the preliminary data released by the statistics office of the European Union.

The region’s biggest economy of Germany shrank 0.2% in the quarter from the October quarter. For the second quarter the economies of Belgium, Italy, the Netherlands, Portugal and Italy shrank and entered in a technical recession.

China pledged to invest in a bailout fund but stopped short of the size and the nature of the commitment. People’s Bank of China Governor Zhou Xiaochuan said at a speech in Beijing today, “China will adhere to the principle of holding assets of EU sovereign debt.” He added China “would participate in resolving the euro debt crisis.”

Investors focused on the Greek negotiations between the ministers of the euro zone and Greece. Ministers cancelled the meeting scheduled and held a teleconference today that will urge Greece to take more concrete steps.

European politicians are demanding more conditions after the leader of the New Democratic Party and in Greece, Antonis Samaras, the presumed front runner in the next election also said he will like to renegotiate the terms and conditions of the bailout after the election that are likely to take place in April.

In London, FTSE 100 index traded 5 lower to 5,895, in Frankfurt DAX 30 index increased 36.6 or 0.5% to 6,765 and in Paris CAC 40 index rose 14.4 to 3,390.

Stock Movers

Banks gained across the region ahead of the ECB lending program at the end of the month. Societe Generale SA gained 3% to €22.50, BNP Paribas SA 4% to €34.88 and Deutsche Bank fell 0.8% to €33.18.

UniCredit SpA gained 2.2% to €4.16 and Intesa Saopaolo SpA increased 1 cent €1.49.

UBS AG increased 1.2% and Royal Bank of Scotland added 2% to 27.30 pence.

Heineken N.V. added €1.34 to €37.90 after the brewer reported annual profit ahead of estimates. Total revenues increased 6.2% including Mexican acquisition and rose 3.6% excluding acquisition.

Net profit in the year decreased 1.4% to €1.43 billion.