Europe close: Indices trim gains amid concerns over Greece
European indices trimmed earlier gains as concerns over Greece continued to weigh on markets.
European Council president Donald Tusk has predicted that it could take until the end of April for Greece to come to a deal with lenders, dashing hopes of a breakthrough.
However, Greece is reportedly set to run out of cash by 20 April.
Greek Prime Minister Alex Tsipras appealed for an “honest compromise” with creditors after German Chancellor Angela Merkel said Greece had a certain degree of flexibility on reforms but they must “add up”.
The euro plunged 0.84% to $1.0742 amid worries about Greek debt.
In economic data, euro-area deflation eased in March, as expected, Eurostat revealed, falling 0.1% this month compared to a drop of 0.3% in February.
However it remains well underneath the European Central Bank’s (ECB) target of just under 2%.
The Eurozone unemployment rate fell to 11.3% in March from a revised 11.4% a month earlier. Analysts had been expecting the rate to remain at the previous estimate of 11.2%.
“The latest data on Eurozone inflation and unemployment did not lift the threat of a prolonged period of deflation in the currency union,” Capital Economics analysts warned.
Meanwhile, the German unemployment rate unexpectedly dipped to 6.4% in March from 6.5% the prior month.
German retail sales rose 3.6% year-on-year in February, more than the 3.4% gain expected.
The data comes off the back of the ECB’s quantitative easing programme which was launched at the beginning of March to help boost the economy and bring inflation back towards the monetary authority’s target.
In the US, an index measuring consumer confidence rose to 101.3 in March from 98.8 the previous month, more than the reading of 96.4 expected.
Companies: Kingfisher, Antofagasta
Kingfisher jumped as the European home-improvement retailer said it will close stores, form a new leadership team and stock more products to lift sales.
Antofagasta slumped after denying reports the miner is in talks about a merger with Teck Resources.
Yoox SpA advanced after agreeing to buy Net-a-Porter business for stock valued at about €719m. Shares of the Swiss owner, Financiere Richemont, slipped.
In commodities, Brent crude dropped 1% % to $55.73 per barrel, according to the ICE.