By Tom Stoukas - Jan 20, 2012 10:09 PM GMT+0700
Jan. 20 (Bloomberg) -- European stocks resumed their earlier losses as energy, construction and health-care companies retreated.
The benchmark Stoxx Europe 600 Index slipped 0.3 percent to 255.83 at 3:08 p.m. in London. The gauge has still advanced 4.6 percent in 2012, the best start to a year since 1997, according to data compiled by Bloomberg.
The Stoxx 600 has risen 2.7 percent this week, heading for a fifth straight advance, amid signs the U.S. economy is recovering, Europe will contain its debt crisis and speculation that China will ease lending curbs to spur economic growth.
Greek officials and private creditors are meeting for a third day to seek agreement on a debt swap. European officials and bondholders agreed in October to implement a 50 percent cut in the face value of Greek debt by voluntarily exchanging outstanding bonds for new securities, with a goal of reducing borrowings to 120 percent of gross domestic product by 2020.
The government and creditors reached an initial agreement for a voluntary swap of Greek debt, Proto Thema reported on its website, without saying how it got the information. The parties agreed that new bonds to replace existing Greek debt would be of a 30-year maturity and carry a coupon beginning at 3.1 percent, reach 3.9 percent and go as high as 4.75 percent, the Athens- based newspaper said.
“It’s possible we’ll have something to say later tonight,” Charles Dallara, managing director of the International Institute of Finance, said in Athens today after meeting with Prime Minister Lucas Papademos. He declined to comment further.
To contact the reporter on this story: Tom Stoukas in Athens at astoukas@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
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