LONDON (ShareCast) - -Eurozone fails to approve Greek bailout.
-Spain lifts short selling ban, banks fall.
-US jobless claims better than expected.

FTSE-100: -0.26%
Dax-30: -0.35%
Cac-40: -0.06%
Ibex 35: -2.45%
Mibtel: -1.1%

Eurozone finance ministers failed to formally approve a 130bn bailout plan for Greece on Thursday. Having cancelled a face to face summit in Brussels treasury chiefs from the 16 other countries which use the euro still had much to discuss during a teleconference.

Several reports suggest new estimates for Greeces total debt by 2020 put it at around 129% of GDP, higher than the 120% target.

Discussions appear to have focused on how the Eurozone could plug this gap, possibly through contributions from the European Central Bank and a reduction in the interest rate Greece must pay on loans.

The atmosphere has not been helped by a war of words between the Greek President Karolos Papoulias and German politicians, notably the finance minister Wolfgang Schäuble.

The odds on a full Greek default are shortening as its lenders insist on ever more precision in the implementation of austerity measures while the Greek government senses the pain of national humiliation ever more acutely.

Spain lifted a short selling selling ban on financial stocks on Thursday morning, causing Banco Santander, amongst others, to fall sharply.

The credit ratings agency Moodys said it was assessing the ratings of a swathe of financial institutions with capital markets operations, with the implication that companies like BNP Paribas, Deutsche Bank and HSBC could face downgrades.

US jobless claims came in at 348,000 last week, significantly below expectations and the lowest figure for four years.

EQUITIES

Spanish banks fell as the countrys short selling ban came to an end in a generally bearish day for European markets.

The worlds biggest food maker, Swiss company Nestle, gained 1.65% after sales growth for 2011 exceeded market expectations.

The French car-maker Renault rose 4.5% after its cash generation during 2011 impressed investors.

Cap Gemini, the French computer giant rose 7.9% on strong profit forecasts for 2012.

OTHER MARKETS

At 5.46pm in Frankfurt, one euro was worth 1.3076, a gain of 0.074% on the fix.

At 4.43pm in London front month futures contracts for Brent crude had gained 0.82% to hit $119.9 per barrel on concern over Iranian intentions in the Straits of Hormuz.

BS

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