European Markets Slide as Ministers Discuss Greece, Barclays Down 4%

Barry Randall
26 Nov, 2012
New York City

European markets declined across the region as finance ministers meet one more time to agree on the next bailout release. Barclays fell 4% after Qatar based sovereign fund sold its remaining Barclays warrants.

[R]3:00 PM Frankfurt – European markets declined across the region as finance ministers meet one more time to agree on the next bailout release. Barclays fell 4% after Qatar based sovereign fund sold its remaining Barclays warrants.[/R]

European markets traded lower as the euro zone finance ministers and the IMF gather to agree on a debt plan and release the next tranche of bailout funds for Greece.

French Finance Minister Pierre Moscovici said on Sunday after a weekend teleconference with the European Central Bank and the International Monetary Fund, said that the differences among lenders have narrowed significantly and a deal is likely to be struck on Monday.

Any deal among lenders is likely to limit the role of the IMF as the multilateral agency worries that Greece still has too much debt even after a recent debt restructuring.

The euro declined 0.2% to $1.285 and fell 0.4% to 106.60 yen after trading at a 7-month high.

In other news, separatist party in Catalonia region made strong gains in regional Spanish election, even though the gains were not enough to make a push for a referendum to separate from Spain.

The yield on German Bunds declined as investors preferred the safety in the euro zone.
German treasury office sold 2.73 billion euros or $3.54 billion of 12-month Treasury bills with a negative yield.

The yield on benchmark 10-year German bond fell 2 basis points to 1.42% but yield on 10-year Spanish bond rose 3 basis points to 5.67%.

In commodities trading, Brent crude declined 30 cents to $111.02 and U.S. crude oil futures decreased 55 cents to $87.77.

In regional trading, FTSE 100 index decreased 0.6% or 34 to 5,785.33, DAX index fell 28.70 or 0.4% to 7,280.05 and CAC 40 index dropped 0.9% or 30.60 to 3,498.10.

Barclays declined 4% in London trading after Qatar holding said on Sunday it had sold its remaining stake of 379 million Barclays warrants.

German steelmaker ThyssenKrupp declined 5% after Credit Suisse lowered its view on the stock. A report also noted that the company may need more time to sell its steel plants in Brazil and the U.S.