Europe open: Stocks little changed as investors eye Greece

LONDON (ShareCast) - European stocks were little changed in early trade following strong gains in the previous session, as investors digested more headlines on Greece and looked ahead to the release of the latest Federal Open Market Committee minutes. By 0905 BST, the Stoxx Europe 600 index was flat, while the CAC and the DAX were down just 0.2%. At the same time, the euro resumed it slide against the dollar, slipping below $1.11.

The currency had fallen sharply on Tuesday after comments from European Central Bank (ECB) members. ECB governing council member Christian Noyer said the monetary authority is prepared to take further action against inflation if needed and that the quantitative easing programme had already made a positive impact on prices. The ECB's Benoit Coeure, meanwhile, said the bank would front-load asset purchases in May and June due to low market liquidity during the summer months.

Sentiment was undermined by press reports that Greece will miss its June debt payment to the International Monetary Fund unless the country receives more aid.

"In Europe this morning indications are that, while there has been progress in negotiations, Greece will miss its June debt payment to the IMF unless a deal is reached by the end of May in which concessions for Greece are highly unlikely - the EU will almost certainly face a second revolt in the form of Portugal's ascendant socialists if any are afforded to Athens," said Michael Van Dulken, head of research at Accendo Markets.

As worries about Greece rumbled on, investors sifted through a raft of corporate news.

France's Altice surged 7% after it said it was buying a controlling stake in US cable company Suddenlink in a deal valued at $9.1bn.

Vodafone added nearly 4% after Liberty Global (NasdaqGS: LBTYA - news) chairman John Malone was quoted as saying that the company would be a great fit for his.

On the downside, UBS (NYSEArca: FBGX - news) slipped after the company said it will pay more than $500m in fines to US authorities for its role in the manipulation of foreign exchange trading markets and benchmark interest rates.

Lafarge (Paris: FR0000120537 - news) dropped into the red after it proposed to cut 380 jobs before it closes its merger with Holcim (Other OTC: HCMLY - news) .

Shares (Frankfurt: DI6.F - news) in luxury retailer Burberry slumped after the company cautioned that it was seeing increased uncertainty in some of its markets and warned over the potential impact of currency movements in the release of its full-year results.

Marks & Spencer (Other OTC: MAKSF - news) was also on the back foot despite posting its first rise in annual profit in four years.

Looking ahead, investors will eye the release of minutes from the Fed's meeting at the end of April for any further clues on the timing of a rate hike.