The financial turmoil gripping Greece and the eurozone’s struggles to forge a common position on the crisis weighed on European stock markets on Friday, with most exchanges ending in negative territory.
In Paris the CAC 40 fell 0.3 per cent to 3925.44 while in Frankfurt the Dax lost 0.5 per cent to finish at 5982.43.
Elsewhere there were declines of 0.4 per cent in Milan, 0.6 per cent in Brussels, 0.75 per cent in Madrid and 0.25 per cent on the Swiss Market Exchange.
The London FTSE 100 index managed to defy the trend, closing with a
gain of 0.1 per cent at 5650.13, its best showing since late June 2008.
The FTSE gain was powered by Lloyds Banking Group, which surprised the
market with a prediction that it would return to profit this year after
suffering a loss of more than 7 billion euros in 2009.
‘‘Traders have little in the way of new information to trade on, ahead of what is expected to be a high volume, ’quadruple-witching’ day, where contracts of stock index futures, stock index options, stock options and single stock futures all expire,’’ Charles Schwab & Company analysts said in a client note.
European market sentiment was meanwhile affected by confusion hanging over the eurozone’s response to the Greek debt and public deficit crisis.
Momentum behind a possible Greek appeal to the International Monetary Fund for assistance, notably aimed at enabling Athens to borrow money more cheaply on the bond market, gathered strength, leaving the European Union divided.
Germany, changing tack, said it was open to an IMF option while the Netherlands, Finland and Italy to varying degrees also declared themselves alive to the move.
Non-euro peers Britain and Sweden firmly back an approach to the IMF if Athens concludes that it cannot keep up with debt repayments.
There has been no change in the French position, which holds that the Greek troubles are an internal eurozone matter.
Ireland is also opposed to going cap in hand to Washington, a government source said.
‘‘The uncertainty regarding possible aid for Greece continues to create pressure,’’ said Commerzbank analyst Ulrich Leuchtmann.
He said: ‘‘Time is running out as Greece will have to find approximately 20 billion euros ($29.6 billion) on the capital markets over the next two months to redeem old bonds.’’
In Asian earlier on Friday, Hong Kong added 0.2 per cent and Tokyo gained 0.75 per cent in subdued trade, helped by a bout of bargain-hunting and a stronger US dollar.
Concerns that China could raise interest rates were eased slightly after the country’s central bank drained billions out of the financial system instead.
The People’s Bank of China said on Thursday it took a massive 213 billion yuan ($33.9 billion) out of the financial system this week to tighten liquidity.
AFP
