G8 Fails to Cheer up European Equities, Now down to 5 Month Low

• Even near 5 month lows, G8 meeting was not able to inspire any rally in European equities as investors remained edgy about ability of Spain and Greece to weather the tough times ahead
• G-8 group meeting was largely ignored by markets in absence of any concrete proposals to prevent Greek exit, probably disorderly
• However stocks bounced back after drifting lower at the start as FTSE rose 0.4 pct while DAX was up 0.3 pct. CAC-40 was up 0.4 pct as per the latest data
• But, markets are expected to remain edgy as there are not many economic data scheduled to be released today.

Quotes

  "The fact remains that there is still a question mark over Greece and there are ongoing concerns about a slowdown in China. There is a great deal of cash on the sidelines, waiting to be invested. But with the uncertainty, that money is likely to stay on the sidelines,"

  "Investors are looking to identify stable, strong cash-generative companies which do have geographical diversification.  It's a kind of bottom-up approach rather than a top-down approach,"

Richard Hunter, Hargreaves Lansdown Stockbrokers