- EU extends credit facility to Bulgarian banks
- BIS warns of buoyant capital markets
- Eurozone CPI figures in line with forecasts
- Brent crude futures slip
FTSE 100: -0.07%
CAC 40: -0.35%
FTSE MIB: -0.63%
IBEX 35: -0.70%
Stoxx 600: -0.15%
European stocks were moving lower come midday following news that the European Commission had approved a £1.4bn credit facility to Bulgaria following runs last week on two of the country's lenders, First Investment and Corporate Commercial Bank.
Wall Street ended higher across the board on Friday, with some market commentary referencing supposed progress on the geopolitical front in Ukraine. Nonetheless, over the weekend several hundred soldiers gathered outside the office of President Petro Poroshenko calling on him to take firmer action against pro-Russian rebels in the east of the country.
French Prime Minister Francois Hollande and German Chancellor Angela Merkel held telephone contacts with Poroshenko and Russian President Vladimir Putin in an attempt to pressure the latter into cutting the flow of arms into Ukraine. That came hours ahead of a deadline by which Russia had to drop its support for the separatists or face fresh economic sanctions.
Brent crude futures were holding lower at $112.61 a barrel. Iraqi government forces have begun an offensive to dislodge ISIS form Tikrit.
The US Chicago manufacturing purchasing managers' index is due to be released this afternoon, although markets are likely to be cautious ahead of Thursday's monthly jobs report.
We have seen this before?
Acting as a backdrop, on Sunday the Bank for International Settlements, the so-called central bank of central banks, warned that global capital markets are extraordinarily buoyant and called on monetary authorities not to fall into the trap of raising rates "too slowly and too late".
The above comes amid record low levels of volatility, with some traders recalling the similarities between the current situation and the episode of similarly low volatility in the run up to the last financial crisis.
Abbvie comes to London
Shire was in focus after reports that AbbVie's Chief Executive is visiting London in a bid to woo the UK outfit. A fourth takeover bid is thought to be in the offing, with bankers having told the Sunday Times that it could value the firm at over £50 per share.
The US Department of Justice may unveil as soon as today a $9bn settlement with French lender BNP Paribas, Reuters has reported.
From a sector stand-point the worst performance was being seen in the following industrial groups within the DJ Stoxx 600: Banks (-0.82%), Travel&Leisure (-0.70%) and Construction&Materials (0.47%).
Eurozone CPI in line with forecasts
Eurozone consumer prices advanced at a 0.5% year-on-year pace in June, as expected by analysts.
The Eurozone's money supply as measured by the M3 monetary aggregate expanded at a 1% year-on-year clip during the month of May, according to data from the European Central Bank (ECB). That was ahead of the 0.8% pace expected by analysts, who saw some signs of improved credit flows in the figures.
Crude futures move lower
The euro/dollar was up slightly, by 0.06% at $1.3652.
Front month Brent crude futures were down by 0.622% to the $112.61/barrel mark on the ICE.