European stocks are little changed after best January since 1989
By Bloomberg
European stocks were little changed after posting their best start to a year since 1989.
The Stoxx Europe 600 Index slipped 0.1 percent to 366.53 at 8:16 a.m. in London. The gauge jumped 7.2 percent in January, ending last week 1.4 percent away from a seven-year high, as the European Central Bank announced an asset-purchase program. A final manufacturing reading by Markit Economics will confirm that factory output in the euro area improved in January, according to forecasts.
Investors are also watching developments in Greece after the benchmark ASE Index plunged 13 percent last month, with lenders reaching a record low as a new government was elected.
Greek Finance Minister Yanis Varoufakis said the nation needs the European Central Bank’s help to keep its banks afloat, adding that Greece won’t take any more aid under its existing bailout agreement and wants a new deal with its official creditors by the end of May. A German government official said Chancellor Angela Merkel is unlikely to agree to a bilateral meeting with Premier Alexis Tsipras at a European Union summit next week to avoid getting into direct confrontation.
Julius Baer Group Ltd. rallied 7.2 percent after saying it will cut costs by 100 million Swiss francs ($108 million) as a surge in Switzerland’s currency may crimp profit.
BP Plc climbed 1.2 percent and BG Group Plc rose 2.4 percent after the Telegraph reported that they will announce $21 billion of cuts to spending plans.
CRH Plc gained 3.1 percent. Holcim Ltd. and Lafarge SA agreed to sell 6.5 billion euros ($7.3 billion) of assets to the Irish building-materials company to overcome antitrust demands and proceed with their planned merger.
Holcim added 2.3 percent and Lafarge climbed 1 percent.
Ryanair Holdings Plc lost 2.2 percent after saying earnings growth next year will be modest because of its fuel-hedging policy. The carrier also raised its annual profit goal amid a jump traffic and lower fuel prices.
Telefonica SA fell 2.4 percent after El Confidencial reported the Spanish phone company plans to sell as much as 5 billion euros of shares.
That dragged the nation’s IBEX 35 Index lower as Spanish lenders also fell.
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