European Stocks Pare Drop as Italy Borrowing Costs Fall

“European stocks pared their decline as Italy’s borrowing costs dropped at a debt sale, offsetting concern that China has less room for monetary easing after a reported showed inflation increased more than estimated. U.S. index futures and Asian shares were little changed.

BHP Billiton Ltd. (BHP) slid 2.7 percent, for the biggest drag on the Stoxx Europe 600 Index.Tullow Oil Plc (TLW) slumped 5.4 percent after saying it will write off $299 million in 2012. SAP AG (SAP) gained 1.3 percent after unveiling the most significant overhaul of its enterprise software in two decades.

The Stoxx 600 lost less than 0.1 percent to 287.33 at 12:20 p.m. in London, paring a slide of as much as 0.4 percent. The equity benchmark is headed for a decline of 0.2 percent this week. Futures on the Standard & Poor’s 500 Index expiring in March decreased less than 0.1 percent today, while the MSCI Asia Pacific Index slipped 0.1 percent.

“The Chinese inflation report is what is weighing on equities today as it has some investors worried that it could limit the degree of further stimulus in China,” Mark Andersen, co-head of asset allocation at UBS AG in Zurich, said in a telephone interview. “We still think the positive growth momentum is supportive of markets.”

European (SXXP) stocks declined from a 22-month high yesterday as European Central Bank policy makers left their benchmark interest rate at a record low. The volume of shares changing hands on the Stoxx 600 shares was 37 percent greater than the 30-day average, according to data compiled by Bloomberg….”

Full article