European Stocks Fall After Greek Talks Deadlock

European stocks fell Monday after Friday's deadlock in negotiations over unlocking further financial aid for Greece kept markets on edge.

The Stoxx Europe 600 was 0.5% lower in early trade, giving up part of the previous week's gains.

The confrontation between Athens and its creditors has weighed on markets over the past two weeks, although weakness has generally been short-lived, with shares not far below their recent all-time highs.

But time is growing short; loans that Greece owes to the International Monetary Fund fall due in early May.

"Tensions continue to rise as Greece's looming payments to creditors come due," said analysts at Rabobank.

On Monday, mining shares bucked the trend, with a continued recovery in iron-ore prices helping Anglo American and Rio Tinto to rise more than 1.5%.

Volkswagen AG was also among the top risers following the departure of Chairman Ferdinand Piech.

Deutsche Bank shares fell after the firm reported on Sunday a sharp fall in first-quarter profit, weighed down by a record fine to settle rate-rigging allegations.

Germany's DAX was down 0.5%, France's CAC 40 lost 1.1%, while the U.K.'s FTSE 100 slipped 0.4%.

Bond markets also showed signs of strain, with Greek 10-year yields rising slightly to 12.6%. Yields rise as prices fall.

Spanish and Italian yields also rose slightly.

Currency markets were largely quiet, with the euro marginally higher against the dollar at $1.0877. The British pound slipped marginally against the buck to $1.5173.

In commodities markets, Brent crude oil was down 0.1% at $65.23 a barrel while gold climbed 0.4% to $1,179.50 an ounce.

Write to Tommy Stubbington at [e-mail]

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