European stocks depressed as Greece awaits bailout funds

<p>Europe’s stock markets are depressed after it was announced Greece is to receive its next bailout tranche.</p>

The major European stock benchmarks are depressed in trading this morning (December 13th) on news that Greece is due to receive its latest tranche of bailout funding, which is essential for keeping the beleaguered Mediterranean nation's economy from sinking into the fiscal abyss.

After weeks of talks between eurozone ministers and the International Monetary Fund, it was agreed in November that the country would be given €44 billion (£37 billion) after it passed a series of harsh austerity measures to prove it is taking ownership of its monetary situation.

Furthermore, ministers conceded in agreeing to cut the nation's debts by €40 billion.

Prime minister Antonis Samaras had warned in October that Greece's coffers would run completely dry in November without the next tranche of funding.

The country had been waiting since June for the cash injection that is necessary for the government to pay its debts, support its banks and keep it from a disastrous default that could forfeit its place within the eurozone.

At 09:40 GMT, the pan-European DJ Eurostoxx 50 was flat at an index value of 2629.1 points.

Learn more about spread betting strategies for the European markets at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.