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Europe stocks little changed as investors await Greek debt talks

11 February 2015 17:00 (UTC+04:00)
Europe stocks little changed as investors await Greek debt talks

By Bloomberg

European stocks were little changed before a meeting between Greek Finance Minister Yanis Varoufakis and his euro-area counterparts in Brussels.

The Stoxx Europe 600 Index dropped 0.1 percent to 372.75 at 8:57 a.m. in London. Stocks climbed Tuesday amid investor optimism that Greece can reach an agreement on new bailout terms with its euro-region creditors.

“At the moment, it’s still about the Greek story,” said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. “There will likely be some compromise but investors are waiting until there’s a solution. There are still risks out there for equity investors, but they should be buying on the dips.”

German Finance Minister Wolfgang Schaeuble late Tuesday damped hopes of a compromise at the emergency meeting today, saying there are no plans to discuss a new agreement. Still, Greek Prime Minister Alexis Tsipras said there is “no way back” for his government, and he wants a new accord that won’t subject his people to more pain.

Greece is trying to drum up support for a 10 billion-euro ($11.3 billion) bridge plan to stave off a funding crunch and buy time to win an easing in austerity terms from creditors. Any deal would require a softening of Germany’s stance.

Among stocks moving on corporate news today, Norsk Hydro ASA jumped 3.6 percent after Europe’s third-biggest producer of aluminum posted a narrower net loss and higher-than-estimated revenue for the fourth quarter.

ING Groep NV rose 2.1 percent. The Dutch financial-services company plans to pay a dividend for the first time in almost seven years after repaying a state bailout, even as profit from its banking activities fell in the fourth quarter.

Reckitt Benckiser

Reckitt Benckiser Group Plc added 3.9 percent. The consumer-products maker plans a new cost-saving initiative to counter tough market conditions even as fourth-quarter sales growth beat estimates.

Tullow Oil Plc fell 3.3 percent. The Africa-focused U.K. explorer that’s lost half its value in a year swung to a loss in 2014 because of declining oil prices. It suspended its dividend.

Telenor ASA retreated 5.7 percent. The Nordic region’s largest phone operator forecast a margin of no more than 35 percent of sales for this year, compared with 35.4 percent in 2014.

Sky Plc slid 4.1 percent after agreeing to pay the bulk of a record 5.14 billion pounds ($7.8 billion) for the U.K. rights to broadcast live English Premier League soccer.

Vestas Wind Systems A/S slumped 5.3 percent. The biggest turbine maker forecast 2015 revenue of at least 6.5 billion euros and a minimum margin of 7 percent on earnings before interest and taxes before special items. That compared with 2014 revenue of 6.9 billion euros and a margin of 8.1 percent.

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