European Stocks Fall, Trimming Weekly Gain Amid Greece Concerns

European stocks fell, trimming a weekly gain, amid concern that Greece’s efforts to renegotiate its debt and stay in the single currency are failing.

Indeks Stoxx Europe 600 Index slipped 0.2 percent to 392.1 at 8:17 a.m. in London. The benchmark gauge is still up 0.8 percent this week, its first weekly gain out of three.

Chancellor Angela Merkel’s advisers are discussing how to deal with a Greek default, including capital controls for Greek banking clients and a debt cut, German newspaper Bild reported, citing unidentified people familiar with the government’s position.

Equities pared gains Thursday after the International Monetary Fund said that its team negotiating with Greece left Brussels after failing to make progress on a debt deal.

The IMF cited “major differences” for the withdrawal of its team, although it left the door open for further talks. The decision came amid increasing criticism from creditors at the Greek government’s refusal to bow to their demands, risking a default and ultimately an exit from the euro area.

Investors will also look to economic data today for clues on the strength of the euro-area economy. Industrial output increased 0.4 percent in April, compared with a contraction the previous month, economists forecast.

Source : Bloomberg

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