European Markets Declined As Investors Await Greek News

(RTTNews) - The majority of the European markets ended Monday's session in negative territory. Investors decided to play it cautious as they await an announcement from the meeting of Eurozone finance ministers in Brussels. The ministers are continuing to discuss how to proceed with Greek debt funding after they ended their talks last week without any major breakthrough.

The Eurogroup of finance ministers are meeting in Brussels today to try to find common ground on a debt deal with Greece' new government. In an interview with German media, Greece's Prime Minister Alexis Tsipras said he was "confident" of reaching agreement in negotiations, but reiterated the country would not accept harsh austerity strings in any debt pact.

Markets in the United States are closed today for the Presidents Day holiday. Investors will be watching for reports on producer prices, housing starts, industrial production and regional manufacturing activity later his week for further clues on the economic growth outlook. The Federal Reserve will publish minutes from the most recent policy meeting on Wednesday amid speculation interest rates may start rising by early summer if the economy continues its pace of recovery.

The emergency liquidity funding is a temporary facility and it would be given only to solvent banks and not to countries, European Central Bank Executive Board member Peter Praet said.

Emergency liquidity assistance (ELA) can only be temporary and can be given only to solvent banks, he said in an interview with Portuguese newspaper Jornal de Negocios. "When you have a systemic crisis, you may need flexibility in terms of duration."

Asked if a country is cut off from ELA, would it be cut out of the monetary union, Praet said ELA is provided to banks, not to countries.

"I will not comment on speculative scenarios," Praet said. "We are not in that situation."

The Confederation of British Industry upgraded its growth estimates for 2015 against a backdrop of lower oil prices and inflation.

The business lobby forecast 2.7 percent expansion for 2015, up from 2.5 percent projected in November. The estimates reflect the likelihood that the Bank of England will not raise interest rates until early next year, helping the economy to grow 2.6 percent in 2016.

The growth rate of 0.7 percent is expected for each quarter this year and 0.6 percent in 2016.

On the back of lower oil prices, consumer price inflation is expected to stay below 1 percent throughout most of 2015.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 0.35 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.11 percent.

The DAX of Germany dropped by 0.37 percent and the CAC 40 of France fell by 0.16 percent. The FTSE of the U.K. declined by 0.24 percent, but the SMI of Switzerland finished higher by 0.70 percent.

In Frankfurt, Deutsche Wohnen AG finished down by 0.94 percent. The company announced that it intends to make a voluntary public tender offer to acquire all outstanding conwert Immobilien Invest SE's shares and convertible bonds at EUR 11.50 per share.

Deutsche Bank increased by 1.64 percent and Commerzbank added 1.08 percent.

Henkel decreased by 1.24 percent and Allianz fell by 1.01 percent. Fresenius Medical Care dropped by 1.32 percent and K+S finished down by 1.08 percent.

In Paris, Total declined by 0.55 percent. Credit Suisse downgraded its rating on the stock to "Neutral" from "Outperform." Technip rose by 2.65 percent.

Airbus climbed by 1.41 percent, after Credit Suisse upgraded it to "Outperform" from "Underperform."

Bouygues surged by 3.77 percent and Vinci gained 1.99 percent.

BNP Paribas advanced by 1.58 percent and Societe Generale added 0.57 percent.

In London, Intertek Group sank by 3.35 percent. Jefferies downgraded its rating on the stock to "Hold" from "Buy."

Tesco rose by 0.33 percent, following reports that it is planning to cut up to 10,000 jobs.

Centrica declined by 2.86 percent, after Citigroup lowered its price target on the stock.

Tullow Oil advanced by 3.75 percent.

Fresnillo sank by 4.38 percent.

Hennes and Mauritz dipped by 0.23 percent in Stockholm. The retailer reported sales data for January.

Actelion, which reported full year earnings, gained 0.57 percent in Zurich. The euro area trade surplus increased in December as the decline in imports was faster than a fall in exports, Eurostat reported Monday. The trade surplus increased to a seasonally adjusted EUR 23.3 billion in December from EUR 21.6 billion in November. Economists had forecast a surplus of EUR 19 billion.

Exports declined 1.1 percent on a monthly basis in December, reversing a 0.5 percent rise in the prior month. At the same time, imports were down 2.4 percent from November, when it decreased 0.5 percent.

The average asking price for a house in the United Kingdom was up 2.1 percent on month in February, property tracking website Rightmove said on Monday, coming in at 279,004 pounds. That follows the 1.4 percent monthly increase in January.