As European Union finance ministers meet in Brussels to discuss approaches to the Greek debt crisis, European stocks continue to advance.
The major European stock indices advanced on Tuesday as EU finance ministers, meeting in Brussels, attempt to address the to €15 billion shortfall in Greece’s budget. The shortfall resulted from the decision by the nation’s “troika” of lenders to allow Greece two extra years (until 2016) to reduce its deficit to 2 percent of gross domestic product. The proposals under consideration allow for lowering interest rates on EU loans to Greece, as well as extending the maturities on Greek sovereign debt (NYSEARCA:GREK). The IMF has resisted additional loans to Greece, as it would make the nation’s debt burden impossible to reduce. Although the IMF has suggested writing-down some of the Greek debt, this approach has been opposed by Germany as well as Luxembourg’s Prime Minister Jean-Claude Juncker.
France received some bad news from Moody’s Investors Service, which downgraded the nation’s credit rating from Aa1 from Aaa (NYSEARCA:EWQ).
As of 11:11 EST, the Euro STOXX 50 Index advanced 0.45 percent to 2,506 – staying below its 50-day moving average of 2,513 (NYSEARCA:VGK). The FTSE 100 Index got a 0.07 percent bump to 5,741 (NYSEARCA:EWU). The German DAX Index climbed 0.66 percent to 7,171 (NYSEARCA:EWG). France’s CAC 40 Index rose 0.53 percent to 3,457 (NYSEARCA:EWQ). Spain’s IBEX 35 Index crept upward by 0.01 percent to 7,764 (NYSEARCA:EWP). Italy’s FTSE MIB Index declined 0.53 percent to 15,258 (NYSEARCA:EWI).
As of 11:19 EST, the euro advanced 0.01 percent against the dollar, trading at $1.2815 (NYSEARCA:FXE).
Spain’s ten-year bond yield declined to 5.84 percent on Tuesday from Monday’s closing level of 5.90 percent. Spain’s two-year bond yield dropped to 3.22 percent on Tuesday from Monday’s closing level of 3.32 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield declined to 4.90 percent on Tuesday from Monday’s closing level of 4.93 percent (NYSEARCA:EWI).
On London’s ICE Futures Europe Exchange, January futures for Brent crude oil advanced by $1.56 (1.40 percent) to $110.14/bbl. (NYSEARCA:BNO, NYSEARCA:USO). Risk On Monday and Mid-East Violence Has Oil Breaking Out