Markets across Europe closed mixed on Wednesday, as the political situation in Greece continues to hold the attention of investors. Greece's Central bank chief George Provopoulos has reportedly told President Karolos Papoulias that people withdrew as much as 700 million euros amid the uncertainty, and banks fear about their survival. There were also media reports released just prior to the European close which stated that the ECB is either considering, or has already put a stop to operations with some Greek banks.
The new round of elections in Greece will reportedly be held on June 17th, after leaders in Athens failed to produce a coalition government. The news triggered doubts regarding the country's international aid and rekindled worries that Greece could exit from the euro currency bloc. German Chancellor Angela Merkel and new French President Francois Hollande both spoke of keeping Greece in the currency bloc and in the European Union during their meeting on Tuesday.
European Union finance ministers have reached an agreement over stricter new banking rules in a bid to avoid future crises and relieve taxpayers from the need to bailout banks. In a statement, the Council of the European Union said the ministers unanimously agreed a general approach on two proposals - the so called "CRD 4" package, amending the EU's rules on capital requirements for banks and investment firms.
The EU Presidency will negotiate the proposals with the European Parliament and will aim for adoption of the agreement by around June 2012.
The Bank of England said the U.K. growth is set to remain subdued with headwinds blowing from the Eurozone debt crisis, leaving room open for more stimulus. Moreover, inflation is judged to take more time to return to its target than estimated three months ago.
In its quarterly Inflation Report released on Wednesday, the central bank said the prospects for U.K. growth remain unusually uncertain. Governor Mervyn King said the economy will continue to face headwinds during the forecast period.
The Euro Stoxx 50 index of eurozone bluechip stocks finished lower by 0.17 percent, while the Stoxx Europe 50 index, which includes some major U.K. Companies, dropped by 0.67 percent.
The DAX of Germany closed lower by 0.26 percent and the FTSE 100 of the U.K. lost 0.60 percent. The CAC 40 of France increased by 0.31 percent and the SMI of Switzerland added 0.13 percent.
In Frankfurt, Infineon Technologies declined by 0.15 percent. Societe Generale upgraded its rating on Infineon to "Hold" from "Sell."
In Paris, EADS finished up by 1.21 percent. The company lifted its full year earnings outlook, as the Airbus maker reported a first-quarter profit, despite strained defense markets in the Western world.
Credit Agricole rose by 2.17 percent. Societe Generale upgraded its rating on the stock to "Buy" from "Sell."
LVMH climbed by 0.53 percent. Merrill Lynch upgraded the stock to "Buy" from "Neutral."
In London, Glencore dropped by 1.72 percent. UBS downgraded its rating on the stock to "Neutral" from "Buy."
UBS also reduced its rating on Xstrata to "Neutral" from "Buy." The stock decreased by 1.54 percent.
ICAP rose by 0.27 percent, after the company reported a lower annual profit.Barclays gained 1.59 percent, after UBS raised the stock to "Buy" from "Neutral."
Lamprell said it would incur a small loss in the first half of the year. The stock sank by 56.92 percent.
Richemont surged by 8.06 percent in Zurich. The luxury goods group reported a higher profit for its fiscal year.
Eurozone annual inflation for April was confirmed at 2.6 percent, down from 2.7 percent in March, final data from Eurostat showed Wednesday. Nonetheless, inflation continues to stay above the European Central Bank's 'below, but close to 2 percent' target. Monthly inflation was 0.5 percent in April.
The Eurozone trade surplus increased notably to EUR 8.6 billion in March from EUR 2.3 billion in February, Eurostat reported Wednesday. The surplus was well above the consensus forecast of EUR 4 billion.
The rate of unemployment and the number of persons claiming the job seekers' benefits in the U.K. posted surprise declines as the number of part-time workers hit the highest level on record during the March quarter, official data showed Wednesday. The latest figures from the Office for National Statistics revealed that the jobless claims fell 13,700 from a month earlier to 1.59 million in April. Economists had expected an increase of 5,000 in the claimant count.
Housing starts in the U.S. came in well above estimates in the month of April, according to a report released by the Commerce Department on Wednesday, although the report also showed a sharp drop in building permits.
The report showed that housing starts rose 2.6 percent to an annual rate of 717,000 in April from the revised March estimate of 699,000. Economists had expected housing starts to increase to 690,000 from the 654,000 originally reported for the previous month.
With utilities output showing a substantial increase in the month of April, the Federal Reserve released a report Wednesday morning showing a much bigger than expected increase in overall industrial production for the month. The Fed said industrial production increased by 1.1 percent in April, far exceeding economist estimates for an increase of about 0.5 percent.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.