European Markets Finished Mixed After Early Gains Eroded

(RTTNews) - The European markets ended Friday's session with mixed results. The market was up in early trade, thanks to yesterday's rally in the United States and the positive performance of the Asian markets. However, those early gains eroded after oil prices dropped after the International Energy Agency warned the recent stabilization in crude oil prices is nothing but a "facade."

The Greek economy expanded in 2014, the first estimate from the Hellenic Statistical Authority showed Friday. Gross domestic product expanded 0.8 percent in 2014. The second estimate is scheduled to be released on October 9, the agency said.

Financial market participants need to take note of the recent periods of volatility and illiquidity and should be aware of the possibility of such events occurring more frequently, Chris Salmon, Executive Director, Markets, of the Bank of England said Friday.

"Financial markets may not have been truly tested for the ability to absorb price moves or flows that persist for a prolonged period, or for a wider spillover between markets," Salmon said.

Recent months have shown the potential for short, sharp shocks, he said. And that is why it is only fit and proper for me to finish on a cautionary note: market participants take heed, he added.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.34 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.11 percent.

The DAX of Germany climbed by 0.87 percent and the CAC 40 of France rose by 0.46 percent. The FTSE of the U.K. dropped by 0.30 percent, but the SMI of Switzerland finished higher by 0.40 percent.

In Frankfurt, Commerzbank climbed by 4.88 percent. The lender has agreed to pay U.S. authorities $1.45 billion to settle allegations of sanctions and money-laundering violations. Deutsche Bank also gained 1.50 percent.

E.ON fell by 1.49 percent and RWE closed down by 1.22 percent.

In Paris, Technip sank by 2.96 percent and Total decreased by 1.75 percent.

In London, Whitbread rose by 1.43 percent. Deutsche Bank upgraded its rating on the stock to "Buy" from "Hold."

Tullow Oil dropped by 3.21 percent and BG Group lost 3.10 percent. Shares of BP finished lower by 1.78 percent and Royal Dutch Shell fell by 2.31 percent.

Mining stocks also turned in a weak performance. Glencore declined by 2.94 percent and BHP Billiton fell by 3.20 percent. Anglo American decreased by 2.22 percent and Rio Tinto surrendered 1.66 percent.

Germany's wholesale prices declined at a slower pace in February, data from Destatis showed Friday. Wholesale prices decreased 2.1 percent year-on-year in February, slower than the 2.6 percent decline seen in January. Nonetheless, the wholesale price index has been declining since July 2013.

U.K. construction output declined unexpectedly in January, marking its first annual fall in nearly two years, damped by weaker housing, data from the Office for National Statistics revealed Friday. Construction output dropped 3.1 percent year-on-year, in contrast to a 5.3 percent growth in December. Economists had forecast 2.1 percent gain. This was the first year-on-year decrease since May 2013 when it fell by 2.8 percent, the ONS said.

Producer prices in the U.S. unexpectedly decreased in the month of February, according to a report released by the Labor Department on Friday, although analysts said the drop was primarily due to a quirk in the calculation of margins.

The Labor Department said its producer price index for final demand fell by 0.5 percent in February after slumping by 0.8 percent in January. The continued decrease by the index came as a surprise to economists, who had expected producer prices to rise by about 0.3 percent.

Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of March, according to the preliminary results of a survey by the University of Michigan. The report showed that the consumer sentiment index tumbled to 91.2 in March from the final February reading of 95.4.

The decrease came as a surprise to economists, who had expected the consumer sentiment index to inch up to a reading of 96.0.