LONDON (ShareCast) - -German consumer confidence seen weakening
-Markets dip on euro firewall fears
-Total under pressure as North Sea gas leak continues

FTSE-100: -0.56%
Dax-30: +0.14%
Cac-40: -0.88%
Euro Stoxx 50: -0.39%
Ibex 35: -1%
FTSE MIB: -0.65%

Most European stock markets were in the red by the close on Tuesday on fears Germany will not be able to lead the continent out of its current economic slump.

The research company Gfk suggested consumer confidence in Germany would dip in April, stoking fears over Europe’s ability to grow its way out of its current difficulties.

Markets were also absorbing comments made by German Chancellor Angela Merkel yesterday that Eurozone bailout funds must be capped at €500bn. There is concern this may not be enough if one of the bigger countries were unable to fund itself on the open market.

Currently the country giving the most cause for concern is Spain, today its central bank said the economy had entered its second recession since 2009. The new Spanish government is already under heavy pressure to cut the budget deficit, which is forecast to reach 5.3% of GDP this year.

EQUITIES

French oil and gas major, Total fell 5.96% by the close as a gas leak at one of its rigs in the North Sea continued.

French conglomerate Vivendi´s Chief Executive Officer, Jean-Bernard Levy, has decided to take over operations at its telecommunications unit SFR, in an effort to turn the division´s fortunes around. The shares fell 0.5%

Spain´s Caixa Bank will acquire Banca Civica for approximately €1bn, creating the country´s largest retail bank.

The leading sectors on the Stoxx Europe 600 were real estate (+0.45%), real estate cap (+0.45%) and technology (+0.32%)

MACROECONOMY

German import prices rose by 1.0% month-on-month in February (Consensus: 0.9%).

Spanish “non-new” house prices fell by 3.4% quarter-on-quarter in the last three months of 2011.

OTHER MARKETS

Front month Brent crude futures had fallen 0.48% by 16:37 in London to $125.05 per barrel.

The euro had dropped by 0.16% against the dollar by 16:56 London time to sit at $1.3338

BS

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