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French Market Declines

2/27/2012 6:10 AM ET

The French market declined on Monday after the G20 finance ministers asked Europe to strengthen its bailout fund, before leading economies provide extra support to raise the resources of the International Monetary Fund.

The meeting of G20 finance ministers and central bank governors held over the weekend in Mexico has added pressure on Germany, which has already contributed the most to bailouts.

Investor sentiment was also impacted by rising oil prices and concerns about a crucial voting in Germany's parliament on the aid package to Greece.

The Euro Stoxx 50 index of eurozone bluechip stocks is declining 1.05 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.70 percent.

The CAC 40 index is currently advancing 1.28 percent.

Peugeot is declining 3.3 percent and Renault is dropping 2.2 percent.

Veolia Environnement is losing 3.2 percent.

Societe Generale, Credit Agricole and BNP Paribas are declining between 1.2 percent and 1 percent.

Elsewhere in Europe, the German DAX is losing 1.25 percent and the UK's FTSE 100 is falling 0.81 percent Switzerland's SMI is declining 1.27 percent.

In economic news, producer prices in the French market increased at a slightly faster than expected pace in January, data released by statistical office Insee showed. Output prices of goods sold in the domestic market increased 4.2 percent on an annual basis in January, faster than the 4.1 percent growth economists expected.

Across Asia/Pacific, markets closed mostly lower as rising oil prices continued to cause concern. Australia's All Ordinaries lost 0.8 percent, Hong Kong's Hang Seng dropped 0.9 percent and Japan's Nikkei 225 slipped 0.14 percent. China's Shanghai Composite Index, however, added 0.30 percent.

In the U.S., futures point to a lower open on Wall Street. In the previous session, the Dow edged down 0.01 percent, while the Nasdaq and the S&P rose about 0.2 percent each.

In the commodity space, crude for April delivery is adding $1.45 to $108.32 per barrel while April gold is falling $11 to $1765.4 a troy ounce.

by RTT Staff Writer

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