European stocks fell on Thursday as investors shrugged off a successful return to the bond markets by Greece four years after the country was rescued with a bailout.
In late morning deals, London's benchmark FTSE 100 index slid 0.10 percent to 6,629.35 points, as caution also set in before the Bank of England's latest interest rate decision.
Frankfurt's DAX 30 retreated 0.34 percent to 9,473.89 points and in Paris the CAC 40 index lost 0.38 percent to 4,426.00 points compared with Wednesday's closing values.
Greece on Thursday sealed a crucial return to bond markets with a five-year debt sale which sent a major signal that the eurozone debt crisis was fading.
Athens raised 3.0 billion euros ($4.1 billion) in a bond sale that was at least eight times oversubscribed, with a yield of 4.95 percent according to reports.
- Greece in 'triumphant return' -
The troubled eurozone nation's return to borrowing on the bond markets represents an important milestone in Greece's financial resurrection after two vast bailouts from the European Union and International Monetary Fund.
"Greece is back. The troubled peripheral nation, who not that long ago was on the verge of being thrown out of the currency bloc and is still many billions in debt to the IMF and its European masters ... is making a triumphant return to the bond markets," said Forex.com research director Kathleen Brooks.
However she sounded a note of caution about the Greek bond success.
"Overall, this debt sale is a triumph in financial terms, however ... Greece is still the weakest link in the currency bloc and if the sovereign crisis flares up once more, then Athens could struggle to stay in the euro area," Brooks added.
The debt issue comes four years after Greece was rescued from impending bankruptcy and was frozen out of normal borrowing.
In company news in London, Marks & Spencer shares slid 1.75 percent to 448 pence, as investors took profits following upbeat fourth-quarter sales.
In Frankfurt, German auto giant Daimler topped the fallers board, slumped 4.13 percent to 67.54 euros after the stock went ex-dividend meaning it no longer carries the right to the most recently-declared shareholder dividend.
In Paris, shares in luxury products giant LVMH surged 4.07 percent to 142 euros after the group reported strong first-quarter fashion and leatherware sales which compensated for slightly disappointing overall sales.
- Pound drops before decision -
The British pound fell as dealers awaited the BoE decision due at 1200 GMT.
The Bank of England is widely expected to freeze interest rates at a record-low 0.50 percent, amid caution over the strength of Britain's economic recovery, analysts said.
The central bank is also predicted to maintain its quantitative easing (QE) stimulus at £375 billion ($628 billion, 455 billion euros).
Ahead of the decision, the European single currency rose to 82.63 British pence from 82.48 pence on Wednesday, while the pound dipped to $1.6771 from $1.6792.
The euro firmed to $1.3858 from $1.3852 late on Wednesday in New York. The dollar fell to 101.45 yen from 101.97.
On the London Bullion Market, the price of gold increased to $1,321.69 an ounce from $1,301.75 on Wednesday.
Asian equities had risen on Thursday, taking their lead from a Wall Street rally after minutes from the US Federal Reserve's latest policy meeting showed no support for an early rise in US interest rates.
While early gains were pared after China said imports and exports fell sharply in March, Hong Kong and Shanghai were lifted by hopes of new government stimulus and news of a plan to increase access between the two cities' stock exchanges.
Hong Kong stocks gained 1.51 percent and Shanghai added 0.44 percent, while Tokyo ended flat.
European stocks fell on Thursday as investors shrugged off a successful return to the bond markets by Greece four years after the country was rescued with a bailout.
In late morning deals, London’s benchmark FTSE 100 index slid 0.10 percent to 6,629.35 points, as caution also set in before the Bank of England’s latest interest rate decision.
Frankfurt’s DAX 30 retreated 0.34 percent to 9,473.89 points and in Paris the CAC 40 index lost 0.38 percent to 4,426.00 points compared with Wednesday’s closing values.
Greece on Thursday sealed a crucial return to bond markets with a five-year debt sale which sent a major signal that the eurozone debt crisis was fading.
Athens raised 3.0 billion euros ($4.1 billion) in a bond sale that was at least eight times oversubscribed, with a yield of 4.95 percent according to reports.
– Greece in ‘triumphant return’ –
The troubled eurozone nation’s return to borrowing on the bond markets represents an important milestone in Greece’s financial resurrection after two vast bailouts from the European Union and International Monetary Fund.
“Greece is back. The troubled peripheral nation, who not that long ago was on the verge of being thrown out of the currency bloc and is still many billions in debt to the IMF and its European masters … is making a triumphant return to the bond markets,” said Forex.com research director Kathleen Brooks.
However she sounded a note of caution about the Greek bond success.
“Overall, this debt sale is a triumph in financial terms, however … Greece is still the weakest link in the currency bloc and if the sovereign crisis flares up once more, then Athens could struggle to stay in the euro area,” Brooks added.
The debt issue comes four years after Greece was rescued from impending bankruptcy and was frozen out of normal borrowing.
In company news in London, Marks & Spencer shares slid 1.75 percent to 448 pence, as investors took profits following upbeat fourth-quarter sales.
In Frankfurt, German auto giant Daimler topped the fallers board, slumped 4.13 percent to 67.54 euros after the stock went ex-dividend meaning it no longer carries the right to the most recently-declared shareholder dividend.
In Paris, shares in luxury products giant LVMH surged 4.07 percent to 142 euros after the group reported strong first-quarter fashion and leatherware sales which compensated for slightly disappointing overall sales.
– Pound drops before decision –
The British pound fell as dealers awaited the BoE decision due at 1200 GMT.
The Bank of England is widely expected to freeze interest rates at a record-low 0.50 percent, amid caution over the strength of Britain’s economic recovery, analysts said.
The central bank is also predicted to maintain its quantitative easing (QE) stimulus at £375 billion ($628 billion, 455 billion euros).
Ahead of the decision, the European single currency rose to 82.63 British pence from 82.48 pence on Wednesday, while the pound dipped to $1.6771 from $1.6792.
The euro firmed to $1.3858 from $1.3852 late on Wednesday in New York. The dollar fell to 101.45 yen from 101.97.
On the London Bullion Market, the price of gold increased to $1,321.69 an ounce from $1,301.75 on Wednesday.
Asian equities had risen on Thursday, taking their lead from a Wall Street rally after minutes from the US Federal Reserve’s latest policy meeting showed no support for an early rise in US interest rates.
While early gains were pared after China said imports and exports fell sharply in March, Hong Kong and Shanghai were lifted by hopes of new government stimulus and news of a plan to increase access between the two cities’ stock exchanges.
Hong Kong stocks gained 1.51 percent and Shanghai added 0.44 percent, while Tokyo ended flat.
