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Europe stocks little changed as Greece’s ASE tumbles before vote

29 December 2014 15:25 (UTC+04:00)
Europe stocks little changed as Greece’s ASE tumbles before vote

By Bloomberg

European stocks were little changed after climbing for a second, shortened week. Greece’s ASE Index sank before a third vote to elect a new president.

The Stoxx Europe 600 Index rose less than 0.1 percent to 343.91 at 9:03 a.m. in London, with the volume of shares changing hands 35 percent below its 30-day average, according to data compiled by Bloomberg. The benchmark gauge gained 1.1 percent in the three trading days ended Dec. 24, following a 3 percent jump the week before. European markets were closed on Dec. 25 and Dec. 26 for the Christmas holiday and Boxing Day. The ASE slumped 7.2 percent today, the most among 18 western- European markets.

The Stoxx 600 has rallied 6.3 percent from its low on Oct. 15 as energy shares rebounded from a slump, the Federal Reserve said it will be patient in the timing of interest-rate increases and the U.S. economy expanded more than forecast. The index last closed 2 percent below an almost seven-year high reached Dec. 5. It’s down 1 percent for December, trimming its annual advance to 4.7 percent.

“There is still a sense that Europe is not fixed,” said Ben Kumar, who helps manage $10 billion at Seven Investment Management LLP in London. “Investors appear to be waiting for action to be taken by the European Central Bank in January and are happy that European markets are just about positive for the year. While volumes are usually low at this time of year, a further drop off suggests to me that investors are awaiting new opportunities.”

2012 Low

Greece’s ASE is heading for its lowest close since November 2012. Prime Minister Antonis Samaras is making a third and final attempt to get his presidential candidate confirmed. Failing could usher in Syriza, an anti-austerity party that seeks to renegotiate the nation’s debt, threatening the stability of Europe’s currency union and the start of the European Central Bank’s bond-buying program. The next ECB meeting is Jan. 22.

Short bets on an exchange-traded fund tracking Greek shares climbed this month to the highest level since May 2012, just before the benchmark ASE fell to a low in the wake of the nation’s debt restructuring.

Benchmark stock indexes of Italy and Spain slid more than 0.9 percent. Germany’s DAX Index declined 0.7 percent.

Stoxx 600 commodity producers gained 1.4 percent today, the most among 19 industry groups, with Rio Tinto Group climbing 1.7 percent and BHP Billiton Ltd. rising 2.3 percent.

Health-care stocks added 0.8 percent as a group, led by a 3.1 percent jump in Novo Nordisk A/S as the U.S. Food and Drug Administration approved its Saxenda weight-loss drugs.

Telefonica SA slid 2 percent after newspaper El Pais reported the phone company may rethink its investments and calendar for rolling out a new fiber-optic network in Spain.

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