Investing.com - European stock markets were mixed to higher in choppy trade on Thursday, as concerns over political deadlock in Greece and the possibility the country may exit the euro zone continued to dominate market sentiment.
During European morning trade, the EURO STOXX 50 rose 0.49%, France’s CAC 40 eased 0.03%, while Germany’s DAX 30 climbed 0.72%.
Market sentiment was hit after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
But chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Investors were also eyeing developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Financial stocks were broadly higher, led by Italian lender Intesa Sanpaolo, up 2.64%, and Spain’s BBVA, with shares jumping 2%. Bankia shares dove 7.69%, however, as Spain's government effectively took over the bank late on Wednesday after days of market anxiety over the lender's viability.
French lenders BNP Paribas and Societe Generale also climbed 1.07% and 1.43%, while Germany’s Deutsche Bank and Commerzbank added 0.81% and 1.55% respectively.
Adding to gains, Deutsche Telekom rallied 1.59% as the company was said to discuss a merger of its T-Mobile USA Inc. unit with MetroPCS Communications Inc.
In London, FTSE 100 added 0.14%, as markets were eyeing the release of the Bank of England’s rate statement later in the day.
Lloyds Banking was one of the session’s top gainers, climbing 1.94% after officially appointing quantity surveyor EC Harris as its single source professional services provider for the next three years.
Elsewhere, U.K. lenders were mixed, with shares in HSBC Holdings rising 0.66%, while Barclays and the Royal Bank of Scotland tumbled 1.12% and 2.60% respectively.
Mining giants Rio Tinto and Bhp Billiton were on the upside, jumping 1.27% and 0.74%, as were copper producers Xstrata and Kazakhmys, adding 0.11% and 3.10%.
At the company's annual general meeting in Brisbane earlier, Rio Tinto Chairman Jan Du Plessis said he is more confident about the global economic picture than he was six months ago, although the world continues to face considerable uncertainty and ongoing volatility.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to rise of 0.16%, S&P 500 futures signaled a 0.38% increase, while the Nasdaq 100 futures indicated a 0.19% gain.
Also Thursday, official data showed that French industrial production fell more-than-expected in March, declining 0.9% after a 0.9% rise the previous month. Analysts had expected industrial production to fall 0.4% in March.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.
During European morning trade, the EURO STOXX 50 rose 0.49%, France’s CAC 40 eased 0.03%, while Germany’s DAX 30 climbed 0.72%.
Market sentiment was hit after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
But chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Investors were also eyeing developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Financial stocks were broadly higher, led by Italian lender Intesa Sanpaolo, up 2.64%, and Spain’s BBVA, with shares jumping 2%. Bankia shares dove 7.69%, however, as Spain's government effectively took over the bank late on Wednesday after days of market anxiety over the lender's viability.
French lenders BNP Paribas and Societe Generale also climbed 1.07% and 1.43%, while Germany’s Deutsche Bank and Commerzbank added 0.81% and 1.55% respectively.
Adding to gains, Deutsche Telekom rallied 1.59% as the company was said to discuss a merger of its T-Mobile USA Inc. unit with MetroPCS Communications Inc.
In London, FTSE 100 added 0.14%, as markets were eyeing the release of the Bank of England’s rate statement later in the day.
Lloyds Banking was one of the session’s top gainers, climbing 1.94% after officially appointing quantity surveyor EC Harris as its single source professional services provider for the next three years.
Elsewhere, U.K. lenders were mixed, with shares in HSBC Holdings rising 0.66%, while Barclays and the Royal Bank of Scotland tumbled 1.12% and 2.60% respectively.
Mining giants Rio Tinto and Bhp Billiton were on the upside, jumping 1.27% and 0.74%, as were copper producers Xstrata and Kazakhmys, adding 0.11% and 3.10%.
At the company's annual general meeting in Brisbane earlier, Rio Tinto Chairman Jan Du Plessis said he is more confident about the global economic picture than he was six months ago, although the world continues to face considerable uncertainty and ongoing volatility.
In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to rise of 0.16%, S&P 500 futures signaled a 0.38% increase, while the Nasdaq 100 futures indicated a 0.19% gain.
Also Thursday, official data showed that French industrial production fell more-than-expected in March, declining 0.9% after a 0.9% rise the previous month. Analysts had expected industrial production to fall 0.4% in March.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.