Eurostoxx 50:2,719.17 (-11.69) Frankfurt DAX:7,123.62 (-25.82) Paris CAC:3,784.80 (-2.99)

EUROPEAN STOCKS were little changed yesterday, closing near a three-month low as a rebound in mining companies and carmakers offset a retreat in banking shares amid concern the region’s sovereign debt crisis will worsen.

National benchmark indexes declined in nine of the 16 western European markets open. Sweden and Finland were closed for public holidays.

In Greece, the benchmark ASE Index slid 0.7 per cent even as EU officials vowed to stave off a default as long as prime minister George Papandreou pushes through a package of budget cuts next week. The Greek parliament is due to vote on €78 billion of austerity measures on June 30th.

Mining companies Antofagasta rallied 2.9 per cent, Xstrata climbed 2.8 per cent and Vedanta Resources gained 1.4 per cent.

Copper rebounded as investors resumed their bullish outlook for demand.

Porsche led gains in carmakers, climbing 1.5 per cent to €52.31 after BofA Merrill Lynch reiterated its “buy” recommendation and price estimate of €75 3 for the shares. Analysts said the company, which is looking to merge with Volkswagen, was a “cheap way to play” Europe’s largest carmaker. VW rallied 2.1 per cent to €134.8.

BMW climbed 3.1 per cent to €67.23 as Manager Magazin said the carmaker was aiming to increase deliveries to 2 million cars by 2016 and to 2.5 million to 2.6 million vehicles by 2020.

UBI sparked a sell-off in Italian banks after the country’s fourth-biggest lender slid 1.3 per cent to €3.77 after earlier falling as much as 5 per cent. UniCredit, the only Italian bank facing stress tests that has not announced plans to sell new shares, lost 5.3 per cent to €1.37. Intesa Sanpaolo fell 4.6 per cent to €1.70.

Moody’s Investors Service said yesterday it may downgrade 13 Italian banks because they would be vulnerable were the government’s credit rating to be cut.

BNP Paribas, France’s biggest bank, slid 2.3 per cent to €50.12, while Deutsche Bank, the largest bank in Germany, fell 1.5 per cent to €39.44.

Cap Gemini, Europe’s largest computer-services company, rose 3.2 per cent to €38.54 after Accenture, the world’s second-biggest technology-consulting company, raised its full-year revenue and earnings forecasts. – (Bloomberg)