RTTN:European Markets Mixed Before Euro Group Meeting
The European markets are mixed on Monday, ahead of a meeting by euro area finance ministers in Brussels this evening. Still, investors in the region are apprehensive about risky assets as uncertainty persisted over the disbursement of the next tranche of aid to debt-laden Greece, amid worries about the U.S. fiscal cliff.
At the end of a day of mass public street protests against austerity measures, the Greek parliament approved the 2013 budget, involving fresh spending cuts, by a 167 to 128 vote. This is a crucial precondition set by the country's creditors to secure the next bailout tranche.
The euro area finance ministers, in their meeting, are not likely to decide on the 31.5 billion euros payment to Greece. But they are expected not to let a 5 billion euro debt repayment due on Friday, to trigger an accidental default.
Japan's economy shrank 0.9 percent in the third quarter of 2012 compared to the previous three quarters, marking its first contraction in three quarters, the Cabinet Office said. On a yearly basis, the drop was 3.5 percent - slightly worse than expectations for a contraction of 3.4 percent.
The Euro Stoxx 50 index of eurozone bluechip stocks is advancing 0.08 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is rising 0.02 percent.
The German DAX is rising 0.25 percent and the UK's FTSE 100 is advancing 0.27 percent. The French CAC 40 is losing 0.06 percent and Switzerland's SMI is falling 0.10 percent.
In Frankfurt, Commerzbank is advancing 2.2 percent. Deutsche Bank is losing 0.2 percent.
Lufthansa is advancing 1.6 percent. Fraport is losing 0.9 percent after reporting a modest growth in passenger traffic in October.
ElringKlinger is rising 1.8 percent. The stock was upgraded to "Buy" from "Hold'' at DZ Bank.
Steel distributor Kloeckner is climbing 4.5 percent. Exane BNP raised the stock to "Outperform" from "Neutral.''
Life insurer Talanx was initiated with a "Neutral" rating at JP Morgan. The stock is adding 1 percent.
In Paris, Lafarge and Schneider Electric are declining 1.3 percent each.
Credit Agricole is dropping 1.2 percent. BNP Paribas and Societe Generale are advancing moderately.
Publicis Groupe is gaining 2.7 percent. Alcatel Lucent is advancing 1.2 percent.
In London, Admiral Group is rising 3.2 percent. Retailer Burberry is advancing 1.9 percent.
Lloyds Banking is gaining 2.6 percent while Barclays is flat.
Among miners, Anglo American is falling 1.6 percent, Randgold Resources is losing 1.2 percent and Eurasian Natural Resources is sliding around 1 percent.
Software firm Aveva is losing 1.3 percent after reporting first-half results.
Cobham, which issued an Interim Management statement, is declining 7.8 percent. The firm expects its US defence/security revenue will decline in 2013 by mid-to-high single digits as the US defence/security market remains challenging.
Telecom Italia is climbing 5.7 percent. Egyptian billionaire investor Naguib Sawiris is looking to acquire a minority stake in the firm for an investment of 5 billion euros.
Across Asia/Pacific, major markets ended mostly lower. Australia's All Ordinaries fell 0.3 percent and Japan's Nikkei 225 retreated 0.9 percent.
On the other hand, China's Shanghai Composite Index advanced 0.5 percent and Hong Kong's Hang Seng rose 0.2 percent, after China's top securities regulator said Sunday that the Dragon nation would further expand quota for a scheme that allows qualified foreign investors to use offshore yuan funds for investing in the country's capital market.
In the U.S., futures point to a slightly higher open on Wall Street. In the previous session, stocks saw modest strength during trading, but closed well off their best levels of the day amid lingering concerns about whether politicians in Washington can avert the looming fiscal cliff.
The major averages ended the day in positive territory, although the Dow closed just above the unchanged line. While the Dow inched up less than a tenth of a percent, the Nasdaq rose 0.3 percent and the S&P 500 climbed 0.2 percent.
In the commodity space, crude for December delivery is falling $0.19 to $85.88 per barrel and December gold is advancing $5.1 to $1736 a troy ounce.
