As EU finance ministers meet in Brussels to resume talks about Greek aid, European stocks decline modestly.
European stocks slipped slightly into the red on Monday as EU finance ministers met in Brussels to discuss possible solutions to the Greek sovereign debt crisis (NYSEARCA:VGK). Reports indicate a rift between IMF officials, who recommend a writedown of Greek debt and German representatives, who oppose such an approach. Because Germany’s elections are scheduled for 2013, it is expected that any agreement reached by the finance ministers would involve some form of “kicking the can down the road” until after Germany’s elections. In the mean time, Greece is still waiting for the release of a tranche of €31.5 billion in loans, which has been upheld for two weeks (NYSEARCA:GREK).
Istat reported that Italian consumer confidence declined in November from 86.2 to 84.8 (NYSEARCA:EWI).
As of 11:15 EST, the Euro STOXX 50 Index declined 0.67 percent to 2,540 – staying above its 50-day moving average of 2,510 (NYSEARCA:VGK). The FTSE 100 Index dropped 0.72 percent to 5,777 (NYSEARCA:EWU). The German DAX Index declined 0.31 percent to 7,286 (NYSEARCA:EWG). France’s CAC 40 Index sank 0.87 percent to 3,498 (NYSEARCA:EWQ). Spain’s IBEX 35 Index fell 0.46 percent to 7,873 (NYSEARCA:EWP). Italy’s FTSE MIB Index declined 0.65 percent to 15,535 (NYSEARCA:EWI).
As of 11:24 EST, the euro declined 0.11 percent against the dollar, trading at $1.2959 (NYSEARCA:FXE). Important Week for the Euro
El Pais reported that Spain’s economy minister, Luis De Guindos confirmed that the nation would request €40 billion in aid for its troubled banks (NYSEARCA:EWP). The amount would come from a €100 billion aid package which was approved in June to rescue the nation’s banking sector.
Italy’s ten-year bond yield declined to 4.78 percent on Monday from Friday’s closing level of 4.82 percent (NYSEARCA:EWI).