European Markets Drop As Euro Continues To Strengthen

(RTTNews) - The European markets ended Friday's session solidly in negative territory. The markets were little changed during the first few hours of the day, before turning definitively to the downside. The continued strengthening of the Euro against the U.S. dollar has weighed on the European markets this week. The currency has reached nearly a 23-month high against the greenback today.

The International Monetary Fund on Thursday approved "in principle" a new loan worth $1.8 billion to Greece.

However, the arrangement has been approved in principle, which means it will become effective only after IMF receives specific and credible assurances from Greece's European partners to ensure debt sustainability.

Further, a second executive board decision is needed to make the arrangement effective.

Greece's debt remains unsustainable, the IMF noted. In the medium term, Athens needs to achieve primary surplus target of 3.5 percent of GDP.

The pan-European Stoxx Europe 600 index weakened by 1.03 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 1.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.01 percent.

The DAX of Germany dropped 1.66 percent and the CAC 40 of France fell 1.57 percent. The FTSE 100 of the U.K. declined 0.47 percent and the SMI of Switzerland finished lower by 0.98 percent.

In Frankfurt, Telefonica Deutschland slipped 0.15 percent after naming Markus Rolle as its new CFO.

In Paris, Valeo dropped 6.94 percent after its first-half sales and earnings narrowly missed estimates.

In London, Vodafone Group climbed 0.49 percent after the world's second largest mobile operator reported better-than-expected revenue growth in its first quarter, thanks to a robust commercial momentum in Europe and accelerating growth in AMAP region.

Paysafe Group jumped 6.83 percent. The payments firm has received a conditional offer worth $3.71 billion from Blackstone Group LP and CVC Capital Partners.

AB InBev fell 0.86 percent in Brussels after the company said it was acquiring Hiball Inc., a San Francisco-based maker of organic energy drinks and carbonated juices and water, for an undisclosed amount.

The UK budget deficit widened more-than-expected in June as debt interest increased notably after inflation lifted the cost of index-linked bonds.

Public sector net borrowing, excluding interventions, increased by GBP 2.0 billion from a year ago to GBP 6.9 billion in June, data from the Office for National Statistics showed Friday. The expected figure was GBP 4.9 billion.

Spain's foreign trade gap widened in May from a year ago, as imports grew faster than exports, preliminary figures from the Economy Ministry showed Friday. The trade deficit rose to EUR 1.43 billion in May from EUR 0.94 billion in the corresponding month last year.