LONDON (ShareCast) - -Markets down on profit-taking
-Successful Italian debt auction
-Weidman sceptical on enlarged euro bailout

FTSE-100: -1.03%
Euro Stoxx 600: -0.97%
Dax-30: -1.13%%
Ibex 35: -1.96%
CAC 40: -1.14%
FTSE MIB: -0.28%

All major European stock markets ended the day down as profit taking and concerns over the size of the euro area’s future bailout fund reduced demand.

Italy managed to sell €8.5bn in six month bonds at an average yield of 1.119%, the lowest since September 2010 as hopes grew Europe has seen the worst of the sovereign debt crisis.

Putting something of a spanner in the works, the President of the Bundesbank, Jens Weidman, indicated an increase in the size of the bailout fund for the Eurozone would not solve the currency area’s long term debt problems. Some investors had wanted European politicians to enlarge the fund beyond its current cap of €500bn

EQUITIES

From a sector standpoint the worst performers on the Stoxx Europe 600 are basic resources (-3.19%). automobiles and parts (-1.73%) and construction and materials (-1.73%)

French oil and gas outfit Total has warned that it could take up to six months to halt a gas leak at its Elgin platform in the North Sea. Its shares closed down 1.4%

Italian lender Unicredit´s Chief Executive has gone on record as saying he expects a positive first quarter, lifting the shares 0.45%.

MACROECONOMY

French GDP expanded by 0.2% quarter-on-quarter in the last three months of 2011, in line with preliminary estimates.

Eurozone credit to the private sector slowed down in February, to a 0.3% year-on-year rate, versus the 0.6% consensus forecast.

OTHER MARKETS

Front month Brent futures were down by 1.22% at 16:41 in london at $124.10 per barrel.

The euro had fallen 0.15% against the dollar by 16:58 London time to sit at $1.3296.

BS

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