European stocks fell Monday after Friday's deadlock in
negotiations over unlocking further financial aid for Greece kept
markets on edge.
The Stoxx Europe 600 was 0.5% lower in early trade, giving up
part of the previous week's gains.
The confrontation between Athens and its creditors has weighed
on markets over the past two weeks, although weakness has generally
been short-lived, with shares not far below their recent all-time
highs.
But time is growing short; loans that Greece owes to the
International Monetary Fund fall due in early May.
"Tensions continue to rise as Greece's looming payments to
creditors come due," said analysts at Rabobank.
On Monday, mining shares bucked the trend, with a continued
recovery in iron-ore prices helping Anglo American and Rio Tinto to
rise more than 1.5%.
Volkswagen AG was also among the top risers following the
departure of Chairman Ferdinand Piech.
Deutsche Bank shares fell after the firm reported on Sunday a
sharp fall in first-quarter profit, weighed down by a record fine
to settle rate-rigging allegations.
Germany's DAX was down 0.5%, France's CAC 40 lost 1.1%, while
the U.K.'s FTSE 100 slipped 0.4%.
Bond markets also showed signs of strain, with Greek 10-year
yields rising slightly to 12.6%. Yields rise as prices fall.
Spanish and Italian yields also rose slightly.
Currency markets were largely quiet, with the euro marginally
higher against the dollar at $1.0877. The British pound slipped
marginally against the buck to $1.5173.
In commodities markets, Brent crude oil was down 0.1% at $65.23
a barrel while gold climbed 0.4% to $1,179.50 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
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