Europe close: Investors worried by Greek risks

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LONDON (ShareCast) - -Athens to vote on further austerity measures on Wednesday
-Another large rise in Spanish unemployment
-USD index hits 2 month high on haven flows
-Banks deposited 261.4bn euros overnight at ECB

FTSE-100: -0.50%
Dax (Xetra: ^GDAXI - news) -30: -0.51%
Cac (Frankfurt: 924169 - news) -40: -1.26%
FTSE Mibtel 30: -1.43%
Ibex 35 (Madrid: IBEX.MC - news) : -1.89%
Stoxx 600: -0.60%

Investors are watching events in Greece -the country faces two critical votes this week- and the change of leadership in the United States and China with both also expected for this week. Furthermore, the latest Chinese service sector PMI data out over the weekend has led some to expect fewer new easing measures in the Asian giant.

As regards events in Greece, eKathimerini said that the ruling coalition will manage to muster sufficient support for the approval of the necessary new austerity measures, although only just. Furthermore, the Financial Times reported that the country´s creditors may have already agreed on a new schedule of debt repayments to allow the nation to return to debt sustainability by 2022.

However, investors´ worries seem to persist.

Of interest in this regard, German daily Handelsblatt wrote that the European Central Bank´s (ECB) so-called Shadow Council does not believe that Greece will be able to pay back its debts.

From a sector stand-point the worst performance was to be seen in shares of the following industrial groups: Banks (-1.20%), Basic Resources (-1.0%) and Telecommunications (-0.91%).

Spanish unemployment rises again

Spanish unemployment increased by 128,200 in October, versus a consensus expectation for 110,000.

The Eurozone Sentix survey of investor confidence fell to 18.8 points in November (Xetra: A0Z24E - news) , after -22.2 in the month before (Consensus: -18.8).

Irish service sector purchasing managers´ index for the month of October has come in at 56.1, versus 53.9 for the previous month.

Haven flows weaken single currency

The euro/dollar is now falling by 0.37% to the 1.2790 dollar level.

Front month Brent crude futures are currently up by 0,844 dollars to the 106.58 dollar mark on the ICE.

AB