Europe midday: Stocks little changed on German confidence data, Greek concerns
European stocks were little changed as investors weighed an increase in German consumer confidence and concerns over Greece.
GfK’s forward-looking sentiment index for Europe’s biggest economy increased to 9.3 in February from 9 in January.
“German consumers, just like most around the world, are receiving a massive boost to real spending power from cheap oil. As a result, consumer confidence is climbing to new highs,” said Berenberg analyst Christian Schulz.
“We expect German households’ consumption to remain a pillar of growth in Germany and the Eurozone in 2015.”
Elsewhere in Europe, Greek stocks declined for a third day, led by banks, amid fears the newly-appointed Syriza-led coalition will challenge austerity measures imposed in the Mediterranean nation.
Holger Schmieding, analyst at Berenberg said: “Greece matters. Europe would love to keep Greece in the euro and on the path to growth. Europe is happy to fund the process, but only if Greece keeps laying the foundations for sustained growth.Tough love means that help is conditional.”
In the US, the Federal Open Market Committee releases its policy statement after European markets close. The US central bank is expected to keep interest rates at 0.25% and reiterate plans for an increase mid-2015. The Fed has maintained the benchmark rate near zero since the 2008 financial crisis.
On the company front, Nordea advanced after raising its 2014 dividend by 44% and reporting a rise in quarterly net income.
Electrolux gained after Europe’s biggest appliances maker posted a 20% gain in fourth-quarter operating profit.
The euro fell 0.15% to $1.1364.
Brent crude dropped 0.64% to $49.28 per barrel.