Stocks fluctuate before auctions

Tue, Jun 26, 2012, 01:00

European stocks fluctuated between gains and losses as demand declined and yields rose at an auction of Spanish debt.

US index futures advanced, while Asian shares fell.

Spanish borrowing costs jumped as the nation sold €3.08 billion of debt. It sold three-month bills at an average 2.362 per cent, compared with 0.846 per cent at the last auction on May 22, and six-month bills at an average rate of 3.237 per cent, compared with 1.737 per cent last month.

German stocks also fluctuated, following a three-day drop, as demand dropped at an auction of Spanish debt, offsetting an increase in a measure of consumer confidence in Europe's largest economy.

EON AG and RWE AG rose at least 2.5 per cent as Bank of America upgraded Germany's two biggest utilities.

The DAX Index added less than 0.1 percent to 6,134.05 at 11:49 am in Frankfurt after swinging between gains and losses at least eight times.

The gauge has fallen 14 per cent from its 2012 high on March 16, trimming the benchmark measure's advance in the first six months of this year to 4 per cent.

In Dublin, the Iseq index was little changed adding just 0.06 per cent to stand at 3,019. Shares in Donegal Creameries were down 4.46 per cent to €3.21, while Elan was down 1.45 per cent €11.22. Paddy Power shares were up 1.04 per cent to stand at €52.54.

Bloomberg