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European stocks are little changed amid inconclusive Greek talks

12 February 2015 14:19 (UTC+04:00)
European stocks are little changed amid inconclusive Greek talks

By Bloomberg

European stocks were little changed as euro- area finance ministers put off decisions on Greece’s bailout terms until next week.

The Stoxx Europe 600 Index lost less than 0.1 percent to 371.87 at 8:42 a.m. in London, paring a drop of as much as 0.2 percent. The benchmark gauge fell yesterday on concern talks would fail between Greece’s finance chief and his euro-area counterparts. The ASE Index in Athens rose 2.5 percent, with the National Bank of Greece SA and Eurobank Ergasias SA climbing more than 8 percent.

The euro region ministers, who met for six hours yesterday without signing off on any conclusions, will return on Feb. 16 to Brussels to try to end the deadlock. Greece is seeking short- term financing to avoid a funding crunch and win more time to convince creditors to ease austerity demands. European Union leaders will also gather at a summit in Brussels later today.

“There’s nothing new under the Athens sky, which should continue to bring volatility to the indices based on the statements that the markets should filter these next 4 days,” John Plassard, vice president at Mirabaud Securities LLP in Geneva, said in emailed comments. “The countries of the euro area have shown that they are imperturbable.”

European stocks rose last week to a seven-year high, following the best start to the year since 1989. Investors are considering risks to those gains from Greek aid negotiations and the conflict between Russia and Ukraine. Russia presented “unacceptable” conditions in peace talks in Minsk, Ukrainian President Petro Poroshenko said, according to AFP news service. Rebels in Donetsk and Luhansk rejected the accord, three officials present at the talks said.

Earnings Reports

Among stocks moving on corporate news, Societe Generale SA fell 2.5 percent. France’s second-largest bank posted quarterly profit that missed analysts’ estimates as revenue in its core consumer markets fell. Pernod Ricard SA slipped 2.6 percent as the maker of Absolut vodka said operating profit stagnated in the six months through December.

Credit Suisse Group AG climbed 6.5 percent. The Swiss lender returned to profit in the fourth quarter, announced further asset reductions, and offered investors a choice to receive their 2014 dividend in shares or cash.

Renault SA rallied 7.8 percent after the carmaker reported a 30 percent jump in 2014 earnings, beating analysts’ predictions. Rio Tinto Group rose 3.3 percent as the world’s second-largest mining company reported better-than-forecast annual profit and said it plans to spend $2 billion buying back shares.

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