European stocks are seen opening on a flat note Thursday, with concerns over Greece's political and economic future likely to be at forefront after the debt-laden nation announced that a second round of elections would be held on June 17. Trading is likely to remain relatively subdued on account of a public holiday in many European countries.
Investors may turn their focus to Italy after the International Monetary Fund said that the Italian economy may contract this year due to strong headwinds from fiscal consolidation, tight financial conditions, and the global slowdown. However, it expects economic activity to recover in early 2013.
The European Union, meanwhile, has made it clear that it wants Greece to remain a part of Eurozone, but the ultimate resolve to stay in the euro area must come from Greek people. Terming Greece as "a very important Member State in the European Union," European Commission President José Manuel Durão Barroso stated this at a news conference Wednesday after a debate on the economic situation in Europe during the weekly meeting of the Commission.
Asian markets are trading mostly higher, as positive economic data from the U.S. and Japan and the release of Fed's most recent policy-setting meeting which indicated that several members of the policymaking committee are ready to consider expanding efforts to stimulate the U.S. economy helped to provide some support.
In domestic corporate news, French oil giant Total SA said it was able to stop the G4-well gas leak at the Elgin complex in the U.K. North Sea following a successful intervention program.
Germany's Deutsche Boerse AG said its shareholders elected a new supervisory board at the annual general meeting.
iQ Power AG announced the accomplishment of the restructuring of the company as announced recently through the sale of majority shareholding of the European sales and production unit.
Ablynx narrowed its first-quarter net loss to EUR 6.2 million from EUR 13.8 million in the prior year quarter, helped by lower R&D expenses as a result of re-focusing of resources within the product pipeline.
Swedish-Swiss power equipment maker ABB announced that it has completed its acquisition of Thomas & Betts Corp. The deal will broaden ABB's strategy of expanding its low-voltage portfolio into new geographies, sectors and products.
British drug maker GlaxoSmithKline Plc said it has now completed acquisition of 10 million shares of Theravance Inc. common stock on the terms earlier announced.
HSBC Holdings Plc said it has made $2 billion in cost savings on an annualized basis to date, with a target to hit the top end of $2.5 billion - $3.5 billion savings target by the end of 2013.
Novartis International AG said results from the pivotal Phase III GLOW2 study demonstrated that once-daily 50 mcg glycopyrronium bromide was superior to placebo in improving lung function, symptom relief and quality of life, and reducing exacerbations over a one-year period.
European stocks ended a choppy session mixed on Wednesday, as the Greek political impasse continued and reports in late-afternoon trading suggested that the European Central Bank has stopped providing liquidity to some Greek banks, raising fresh concerns about Europe's debt crisis. The ECB later confirmed the reports.
The Euro Stoxx 50 index of eurozone bluechip stocks finished down 0.2 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, dropped 0.7 percent. Around Europe, the German DAX eased 0.3 percent and the FTSE 100 of the U.K. lost 0.6 percent, but France's CAC 40 rose 0.3 percent and the SMI of Switzerland edged up 0.1 percent.
On Wall Street, stocks failed to sustain an early upward move overnight, as worries about the political situation in Greece once again overshadowed a batch of solid U.S. economic data on industrial production and housing starts. The Dow slipped 0.3 percent to almost a four-month low, while the tech-heavy Nasdaq and the S&P 500 lost 0.7 percent and 0.4 percent, respectively, to set new three-month lows.
The minutes from the last FOMC meeting showed that members of the Federal Open Market Committee remain divided on the prospects for a third round of quantitative easing. The minutes said "several" members are in favor of additional asset purchases if the economic recovery falters, up from language in the previous months indicating "a few" potential advocates for QE3.
For comments and feedback: editorial@rttnews.com