European stocks Market down december 12 2011

European stocks Market down december 12 2011 ; European stock markets fell Monday as the rally sparked by Friday's progress at the summit of European Union leaders proved to be short-lived. The Stoxx Europe 600 Index fell by 0.7% to 241.25. London's FTSE 100 Index was down 0.4% to 5509.76, Frankfurt's DAX lost 1.2% to 5914.23, while Paris's CAC-40 Index decreased by 1.1% to 3139.54. By contrast, the decline in risk appetite for stocks helped to push core government bonds higher, with the March bund contract up 41 ticks at 135.78.

There was no major data on Monday's agenda, and as the week progresses and holidays approach, the market is likely to thin further with ranges likely to dominate against the background of little directional impetus, said Crédit Agricole. "Our call to sell risk assets on rallies remains in place," it added.

The cautious mood was reflected in the euro, which trickled lower against rivals Monday. It was fetching $1.3316, down from $1.3385 late Friday in New York, and ¥103.42, a decrease from ¥103.90. The dollar was at ¥77.67, falling from ¥77.63.

Basic resources stocks posted some of the biggest losses so far, hurt by the slide in commodity prices. Spot gold was at $1,689.50 per troy ounce, down $21.90 from its New York settlement Friday. January Nymex crude-oil futures were down 64 cents at $98.77 per barrel and Brent oil futures were 85 cents lower at $107.77. The weakness here saw the Stoxx Europe 600 basic resource index fall by 1.4%.

Elsewhere, the banking sector received a bashing, despite Deutsche Bank upgrading its stance on the sector to neutral from negative. The Stoxx Europe 600 banks index lost 1.1%. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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