By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — European stock markets wobbled in early trade on Wednesday, as fresh worries over Greece’s ability to repay debt weighed on investors’ minds, while banks partly recovered from recent steep losses.
The Stoxx Europe 600 index XX:SXXP +0.05% was 0.1% lower at 250.46. The index has closed in negative territory for three straight days on concerns Spain will have to ask for a bailout amid economic troubles in the region’s and surging borrowing costs.
Late Tuesday officials from the European Union added to euro zone concerns, saying Greece likely will need another round of debt restructuring, according to Reuters. EU officials see more Greek restructuring: report
Spain’s borrowing costs were also in the spotlight on Wednesday as the yield on 10-year government bonds ES:10YR_ESP +0.39% rose 7 basis points to 7.62%, according to electronic trading platform Tradeweb.
The IBEX 35 index XX:IBEX +1.97% jumped 1.5% to 6,043.20, as banks recouped from recent sharp losses. Banco Santander SA ES:SAN +2.20% SAN -5.05% added 2%, while BBVA SA ES:BBVA +1.60% BBVA -5.82% picked up 1.5%.
Among other notable gainers, steelmaker ArcelorMittal SA NL:MT +2.39% rose 2.6%, as fiscal first-quarter profit beat analysts expectations, although earnings dropped compared to the same period last year. ArcelorMittal says conditions remain tough
For broader European markets, stocks got an early push from European Central Bank council member Ewald Nowotny, who reportedly said there are arguments in favor of giving the EU’s rescue fund, the European Stability Mechanism, a banking license. Such as license would allow the fund to borrow money from the European Central Bank, according to Bloomberg.
Late Tuesday officials from the European Union added to euro zone concerns, saying Greece likely will need another round of debt restructuring, according to Reuters. EU officials see more Greek restructuring: report
Spain’s borrowing costs were also in the spotlight on Wednesday as the yield on 10-year government bonds ES:10YR_ESP +0.39% rose 7 basis points to 7.62%, according to electronic trading platform Tradeweb.
The IBEX 35 index XX:IBEX +1.97% jumped 1.5% to 6,043.20, as banks recouped from recent sharp losses. Banco Santander SA ES:SAN +2.20% SAN -5.05% added 2%, while BBVA SA ES:BBVA +1.60% BBVA -5.82% picked up 1.5%.
Among other notable gainers, steelmaker ArcelorMittal SA NL:MT +2.39% rose 2.6%, as fiscal first-quarter profit beat analysts expectations, although earnings dropped compared to the same period last year. ArcelorMittal says conditions remain tough
For broader European markets, stocks got an early push from European Central Bank council member Ewald Nowotny, who reportedly said there are arguments in favor of giving the EU’s rescue fund, the European Stability Mechanism, a banking license. Such as license would allow the fund to borrow money from the European Central Bank, according to Bloomberg.
In Germany, Daimler AG DE:DAI +3.52% advanced 3% after the car maker affirmed its full-year earnings guidance, despite posting lower profit for second quarter. Daimler keeps guidance despite lower profits
Volkswagen AG DE:VOW +1.36% DE:VOW3 +1.91% tracked Daimler higher and added 1.2%, while BMW AG DE:BMW +1.53% rose 0.9%.
The DAX 30 index DX:DAX +0.20% , however, slid 0.1% to 6,381.86.
The U.K. index was also lower, weighed by disappointing earnings reports. BT Group PLC UK:BT.A -4.83% dropped 4.9%, as fiscal first-quarter sales declined and missed analyst expectations.
London’s FTSE 100 index UK:UKX -0.15% lost 0.2% to 5,489.89.
In France, the CAC 40 index FR:PX1 +0.32% gained 0.1% to 3,076.50, lifted by a 5.3% gain for Peugeot SA FR:UG +3.24% FR:UG +3.24% The car maker presented plans to raise 1.5 billion euros ($1.81 billion), as it swung to a loss in first half of the year.
Sara Sjolin is a MarketWatch reporter, based in London.
