European stocks lower ahead of BoE and ECB policy statements (AP) (04-03-2010)

LONDON (AP) -- European stock markets were somewhat lower on Thursday as investors awaited the latest policy statements from the European Central Bank and the Bank of England and digested the news that Greece is looking to raise euro5 billion ($6.8 billion) from bond markets to finance its debt.

In Europe, the FTSE 100 index of leading British shares was down 8.72 points, or 0.2 percent, at 5,524.49 while Germany's DAX fell 22.75 points, or 0.4 percent, to 5,795.13. The CAC-40 in France was 6.07 points, or 0.2 percent, lower at 3,836.45.

Though the European Central Bank and the Bank of England are expected to keep their main interest rates on hold at 1 percent and 0.5 percent, investors appear to be treading carefully ahead of their accompanying statements.

Despite the anemic economic recovery in the eurozone, Trichet is expected to confirm that special lending measures to banks introduced during the financial crisis will continue to be scaled back.

Greece also remains in focus after Greece's Public Debt agency chief said a new 10-year bond was oversubscribed. The government was seeking a maximum of euro5 billion but had bids for euro7 billion within an hour of the book opening.

The sale will be watched closely by financial markets to gauge the depth of Greece's debt crisis. The announcement of the issue comes a day after debt-ridden Greece detailed a whole new round of austerity measures, including salary cuts for civil servants, pension freezes and tax hikes on cigarettes, alcohol, luxury goods and gems.

Source: AP