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European Markets Trade Lower On Greece Worries

The European markets are trading weak on Tuesday, as uncertainty continued in Greece about forming a new government. The Asian markets had a mixed outing, while the U.S. index futures indicate a lower open.

Efforts are on in Greece to form a new cabinet, failing which the country will have to face new elections. In the parliamentary elections, the two main parties - the conservative New Democracy and the left-wing Pasok - suffered huge defeats, while those opposed to more cuts won almost 60 percent support.

The Euro Stoxx 50 index of eurozone bluechip stocks is declining 0.97 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.35 percent.

The German DAX is retreating 0.79 percent and the French CAC 40 is declining 1.6 percent. The UK's FTSE 100 is losing 0.16 percent while Switzerland's SMI is dropping 0.51 percent.

In Frankfurt, Commerzbank is dropping 2.8 percent and Deutsche Bank is falling 2.7 percent.

Aareal Bank is losing about 3 percent. Commerzbank raised the stock to "Buy" from "Hold."

BMW, Daimler and Volkswagen are losing between 2.8 percent and 2.3 percent.

Societe Generale reduced its rating on MAN to "Hold" from "Buy." The stock is falling 1.8 percent.

Munich Re is declining 2 percent. The re-insurer reported a profit of 780 million euros for the first quarter benefited by lower claims costs from natural catastrophes and higher investment income.

Deutsche Post is losing 1.1 percent after the firm confirmed its full year outlook on the back of strong first-quarter profit.

Deutsche Bank raised Heideldruck to "Buy" from "Hold." The stock is up 0.5 percent.

ING raised HeidelbergCement to "Buy" from "Hold." The stock is down 0.5 percent.

In Paris, Peugeot is falling 3.8 percent and Renault is dropping 3.1 percent.

Schneider Electric and Technip are falling 3.5 percent each. Oil giant Total is declining 1.9 percent.

BNP Paribas is declining 3 percent and Societe Generale is retreating 2.8 percent. Credit Agricole is falling 1.6 percent.

Miners are notably lower in London. BHP Billiton and Rio Tinto are declining 1.6 percent each. Vedanta is retreating 5.2 percent.

HSBC reported that its first quarter underlying pre-tax profits rose, thanks to solid support from its investment banking division and emerging market operations. The stock is up 0.7 percent.

Tullow Oil is advancing 4.4 percent. The firm said its Ngamia-1 well in Kenya Rift Basin discovered further oil.

Aviva is climbing 3.4 percent after announcing the resignation of its CEO Andrew Moss.

Roche is down 1.3 percent in Zurich. JPMorgan cut the stock to "Neutral" from "Overweight."

Royal KPN is surging 19.8 percent after America Movil raised its stake in the company.

Energy firm Statoil reported a decline in first-quarter profit, as comparability was affected by a prior-year divestment gain, but production increased. The stock is up 0.4 percent in Norway.

Solvay, which reported quarterly results on Monday, is climbing nearly 10 percent in Brussels.

Bankia is declining 5.7 pecent in Madrid.

In economic news, German factory orders increased 2.2 percent in March from the previous month on robust foreign demand, the Federal Ministry of Economy and Technology said.

Across Asia/Pacific, markets had a mixed outing. Australia's All Ordinaries added 0.3 percent and Japan's Nikkei 225 climbed 0.7 percent. However, China's Shanghai Composite Index and Hong Kong's Hang Seng slid 0.1 percent and 0.3 percent, respectively.

In the U.S., futures point to a lower open on Wall Street. In the previous session, markets recovered from weakness seen in early trading owing to European concerns, but ended the day nearly flat. While the Dow fell 0.2 percent, the Nasdaq edged up 0.1 percent and the S&P 500 crept up 0.04 percent.

In the commodity space, crude for June delivery is falling $0.79 to $97.15 per barrel and June gold is losing $9.9 to $1629.2 a troy ounce.

by RTTNews Staff Writer

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