A lack of progress in the US regarding the fiscal cliff weighed on investors there, counteracting the positive sentiment created by eurozone finance ministers finally reaching decision on providing aid to Greece. In Europe, ministers have agreed to cut interest rates from the previous aid received by Greece last May 2010.
They have suspended interest payments for a decade applicable to the nation’s second bailout, and mapped a debt buy-back plan for its troubled member.
UK’s FTSE gained 13 points (+0.2%) to settle at 5800 whilst Germany’s DAX added 40 points (+0.6%) to settle at 7332. France’s CAC traded flat to settle at 3502.
In the US, markets reacted negatively when Senator Majority Leader, Harry Reid, said that there hasn’t been much progress in the way of the discussions.
The Dow Jones fell 89 points (-0.7%) to settle at 12878 whilst the S&P decreased seven points (-0.5%) to settle at 1399. The Nasdaq lost nine points (-0.3%) to settle at 2968.
In the commodity space, crude oil for January delivery fell $0.56 to settle at $87.18 a barrel after reports indicated that supplies probably grew by 350,000 barrels in the past week.
Gold for December delivery fell 0.4% to settle at $1742.30 and ounce due to weaker demand from India, the biggest buyer of bullion in the past year.
In the currency space, the Japanese yen traded lower than the US dollar as investors sought the safe-haven of the latter currency. Meanwhile, the euro fell against the yen amidst concerns that the eurozone’s debt buy-back plan might not materialize.