Most European stocks edged lower Friday, snapping a four-session run of gains, as investors lost patience with Greek debt negotiations.
The Stoxx 600 XX:SXXP ?closed 0.3% lower at 255.85, ending with a weekly gain of 2.7%.
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Investors were closely following talks between the Greek government and private creditors, which continued on a third day in an effort to reach a crucial agreement to write down debt.
The talks broke down last Friday, raising concerns that Greece would miss another multibillion-euro bailout.
European markets spiked Friday afternoon on media reports that Greek Prime Minister Lucas Papademos and global bank representatives had concluded their meeting and would resume Friday night. The two parties could agree to a coupon ranging between 3% and 5%, according to Greek media reports. No definite agreement was announced at market close and stocks pulled back in red for the weekend.
In Athens, the Greek ASE Composite GR:GD ?was up 2.7% at 708.18. outperforming the rest of the European stock market.
Broader-market decline
Optimism out of Athens was not, however, enough to pull the broader European market out of negative sentiment.
The Br! itish FT SE 100 UK:UKX fell 0.2% to 5,728.55 and the French CAC 40 FR:PX1 ?index was down 0.2% at 3,321.50, weighed down by SAFRAN S.A. FR:SAF , off 1.2%, and L��Oreal S.A., FR:OR ,?down 1.6%.
Morgan Stanley on Friday downgraded L��Oreal to equal weight from overweight, citing concerns about growth potential in 2012.
��We��re seeing a retraction. We have had a few good days, and it��s normal for the market to pull back after that,�� said Christoph Riniker, head of strategy research at Bank Julius Baer & Co.
Most European stock markets reached the highest level in five months on Thursday on the back of successful debt sales in the periphery, but further increases are unlikely in the near term, said Morten Kongshaug, chief strategist at Danske Bank.
��We have a little bit of an overbought stock market compared to what we see in credit markets. It has had a fairly good run and we have to see new triggers to gain the next 10%,�� he said. ��We��re getting close to peak levels of last summer and I imagine we would stay there for a period to gain a little more strength in the market.��
Oil shares weigh
Oil shares weighed particularly on the European market Friday, as crude-oil futures for February delivery ?edged back below $100 a barrel to $98.37. On Thursday, the price settled at $100.39 a barrel.
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