Investing.com - European stocks closed mixed Thursday, as the European Commission forecasted a shrinking economy despite bullish German business climate numbers.
Near the close of European trade, the EURO STOXX 50 fell 0.43%, France's CAC 40 was flat at 0.00%, while Germany’s DAX dropped 0.50%. Meanwhile, in the U.K. the FTSE 100 gained 0.36%.
The bearish sentiment was stroked when the European Commission changed its November economic growth forecast for 0.05% growth to a 0.3% contraction in the euro zone.
The EU expects the economy to shrink 1.3% in Italy and give back 1% in Spain.
However, the European Union Economic and Monetary Commissioner, Olli Rehn stated, “Although growth has stalled, we are seeing signs of stabilization in the European economy. Economic sentiment is still at low levels, but stress in financial markets is easing.”
Meanwhile, Germany posted better than expected business climate index figures. The Munich based Ifo institute’s business climate index climbed to 109.6 in February from 108.3 in January.
In Greek news, German Chancellor Angela Merkel stated she will keep the pressure on Greece to meet its debt cutting pledges as many are skeptical of Greece sticking to its word.
Commerzbank gave back 6.6% after stating it will not pay a dividend and asked investors to swap hybrid financial instruments trading below face value in an effort to boost its finances.
French pipe maker, Vallourec fell 6.4% upon reporting fourth quarter profit beating expectations but forecasting lower profit for 2012.
Deutsche Telekom dropped 3% after forecasting further earning declines this year.
In bullish news, Natixis, the investment arm of Groupe BPCE, surged 8.4% after reporting a less than expected loss on its write down of Greek debt.
Cookson Group agreed to sell its U.S. precious metal unit to Berkshire Hathaway sending shares higher by 4.7%
Stocks are trading higher midsession in the United States with the Dow gaining 0.33%, the S&P 500 advancing 0.26% and the Nasdaq climbing 0.61%
On Friday, investors are awaiting the U.K.`s gross domestic product, U.S. consumer sentiment and new home sales.
Near the close of European trade, the EURO STOXX 50 fell 0.43%, France's CAC 40 was flat at 0.00%, while Germany’s DAX dropped 0.50%. Meanwhile, in the U.K. the FTSE 100 gained 0.36%.
The bearish sentiment was stroked when the European Commission changed its November economic growth forecast for 0.05% growth to a 0.3% contraction in the euro zone.
The EU expects the economy to shrink 1.3% in Italy and give back 1% in Spain.
However, the European Union Economic and Monetary Commissioner, Olli Rehn stated, “Although growth has stalled, we are seeing signs of stabilization in the European economy. Economic sentiment is still at low levels, but stress in financial markets is easing.”
Meanwhile, Germany posted better than expected business climate index figures. The Munich based Ifo institute’s business climate index climbed to 109.6 in February from 108.3 in January.
In Greek news, German Chancellor Angela Merkel stated she will keep the pressure on Greece to meet its debt cutting pledges as many are skeptical of Greece sticking to its word.
Commerzbank gave back 6.6% after stating it will not pay a dividend and asked investors to swap hybrid financial instruments trading below face value in an effort to boost its finances.
French pipe maker, Vallourec fell 6.4% upon reporting fourth quarter profit beating expectations but forecasting lower profit for 2012.
Deutsche Telekom dropped 3% after forecasting further earning declines this year.
In bullish news, Natixis, the investment arm of Groupe BPCE, surged 8.4% after reporting a less than expected loss on its write down of Greek debt.
Cookson Group agreed to sell its U.S. precious metal unit to Berkshire Hathaway sending shares higher by 4.7%
Stocks are trading higher midsession in the United States with the Dow gaining 0.33%, the S&P 500 advancing 0.26% and the Nasdaq climbing 0.61%
On Friday, investors are awaiting the U.K.`s gross domestic product, U.S. consumer sentiment and new home sales.