European stock markets ended slightly lower Wednesday, although the morning news said that the euro zone Permanent bailout fund ESM (European Stability Mechanism) may get the European Central Bank loans, following this, the major indexes went up, but the weak U.S. new home sales data depressed the investor sentiment, making it difficult for the European stock markets to rally higher.
The Pan-European Stoxx 600 index fell 0.1% to close at 250.39 points. The index has ended lower for the fourth consecutive trading day.
In the afternoon session, the major European stock markets generally pulled back after the data from the United States showed that single-family home sales fell 8.4%, record the biggest drop over more than a year.
Earlier, the European Central Bank.’s Governing Council member Ewald Nowotny said that the ESM is expected to receive a banking license, which can approve it to obtain loans directly from the European Central Bank. The news eased the pressure on the borrowing costs of Spain, Spainish 10-year bond yield fell 21 basis points, to 7.34% Wednesday.
Among the European stock markets today, the Spainish IBEX 35 index rose 0.8%, to close at 6004.90 points. the German DAX 30 index climbed up 0.3%, to close at 6406.52 points; the French CAC 40 index edged up 0.2%, to close at 3081.74 points, primarily boosted by banking stocks; the British FTSE 100 index fell 0.02 percent, to close at 5498.32 points, despite supported by the heavyweight HSBC Holdings (HBC), the latter saw share price rising 1.4%.