On Monday European stocks fell as banks declined after officials agreed to review the terms of Greece’s bailout, reigniting concern about the region’s sovereign debt crisis. U.S. index futures and Asian equities advanced.
National Bank of Greece SA dropped 3.54 percent as the cost of insuring Greek debt climbed to a record. HSBC Holdings Plc slid 1.6 percent after Europe’s largest bank by market value reported higher costs. Centrica Plc led utilities lower after saying higher taxes will hurt earnings. MAN SE gained 2.6 percent after Volkswagen AG offered to buy the truckmaker.
The pan-European FTSEurofirst 300 index of top shares was down after gaining 1.2 percent in the previous session after forecast-beating April U.S. nonfarm payroll data.
Late on Friday a meeting of top euro zone finance officials acknowledged that Greece needed a "further adjustment programme" to tackle its deteriorating debt crisis. Adding to investors worries over the weekend was news that an Irish minister said any concessions given to Athens should mean better terms for Dublin.
Banking stocks, which are sensitive to changes in the economic environment and have been hit by losses following the euro zone peripheral debt situation featured among the worst performers.
Bank of Ireland, BBVA and Credit Agricole fell 2.2 to 2.4 percent, while separately HSBC shares slipped after it said profits fell 14 percent from a year ago.
On the upside, mining stocks featured among the top performers, tracking base and metal prices higher following a sell-off last week. A weaker dollar, which makes commodities cheaper for other currencies, was also helping the sector, with the euro recovering from steep falls of the previous sessions.
Asian energy-related stocks climbed after U.S. jobs growth boosted confidence in the world’s largest economy and halted a rout of commodity prices, offsetting declines among Japanese power companies.
This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management,
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