Europe stocks drop; bank shares rise

PanARMENIAN.Net - Europe's main stock markets fell on Monday, Jan 7 as investors took profits from big gains last week, but bank shares surged after a top rule-setting body said it would relax its asset requirements for the sector, AFP reported.

At the beginning of the first full trading week in 2013, London's benchmark FTSE 100 index of top companies dipped 0.30 percent to 6,071.75 points, Frankfurt's DAX 30 index dropped 0.37 percent to 7,747.19 points and the Paris CAC 40 fell 0.37 percent to 3,716.04.

The euro nudged down to $1.3043, which compared with $1.3067 late in New York on Friday. Gold prices firmed to $1,653.96 per ounce on the London Bullion Market, from $1,648. "European markets have come into a consolidation phase," said analyst Anita Paluch at trading firm Gekko Global Markets.

"Investors booked profits after last week's strong gains, though banking shares gained as the Basel Committee watered down the drastic measures and extended the deadline for banks to create the buffer by four years.

"There is little inspiration on the economic front today and the European Central Bank meeting on Thursday will be definitely eyed."

Equities had rallied sharply last week in holiday-shortened trade after US lawmakers clinched a deal to avert a much-feared "fiscal cliff" of drastic tax rises and automatic spending cuts.