Attractions In West Miami - European Stocks Higher Despite Italy, Greek Gloom

Source - http://online.wsj.com/
By - Nina Bains
Category - Attractions In West Miami
Posted By - Inn and Suites In West Miami

Attractions In West Miami

Italian stocks underperformed peers Monday as shares in Milan-listed Saipem plunged, while elsewhere a sense of calm prevailed ahead of a keenly awaited rate decision from the U.S. central bank.

Shares in Saipem SpA plunged over 20% in early trade after Europe's biggest oil and services company by market value lowered its 2013 guidance late Friday.

The lowered outlook followed an unexpected earnings cut at the start of the year and resulted in both Exane BNP Paribas and Societe Generale downgrading their recommendations on the stock.

Meanwhile, Greek stocks slumped ahead of a meeting of political leaders to discuss the shutdown of the country's public broadcaster announced last week.

The shutdown has sparked continued protests and strikes by Greek journalists as well as created a political divide.

Moody's Investors Service said Greece's "fraying political consensus" was a credit negative factor.

Elsewhere, European stocks were mostly higher, helped by gains in the telecoms sector. The Stoxx 600 telecoms index rose 1.6%, with Telefonica SA among the strongest gainers.

According to El Mundo, the Spanish government blocked a friendly takeover bid of 100% of Telefonica SA from U.S. telecom giant AT&T Inc. However, Telefonica SA later moved to rebuff the report, saying it hadn't received a takeover approach. Shares in France Telecom, Deutsche Telecom and Vodafone also rose.

The foreign exchanges and fixed-income markets were mostly stable as investors sat on their hands ahead of the Federal Open Market Committee's decision on U.S. monetary policy Wednesday and the subsequent question and answer session with Federal Reserve Chairman Ben Bernanke.

"After last week's tumult, it very much looks like global markets will be rocking back on their heels waiting for Mr. Bernanke to tell the world on Wednesday afternoon in Washington that tapering is not tightening and that the eventual end of quantitative easing is not the harbinger of higher rates," said Ray Attrill, co-head of FX strategy at National Australia Bank.

Also in focus, the Group of Eight summit of some of the world's richest countries takes place in Northern Ireland.