European stocks drift lower amid light trading

Having opened on a weaker footing, the European stocks fluctuated between gains and losses before meeting fresh sellers amid cautious trades as holiday-season lull set into markets, while investors refrain from creating fresh positions.

The European equities retreated as the trading volume dropped a third than the 30-day average, while looming concerns over the ailing Italian banking sector also added to the cautious tone prevalent in the market.

Bloomberg reports, “Banca Monte dei Paschi di Siena SpA slid 6.8 percent, taking its four-day slump to 28 percent. The lender said no anchor investor has shown interest in its stocks sale aimed at raising funds for a capital increase. It will probably fail to lure sufficient demand, leading to nationalization, people familiar with the matter said.”

Meanwhile, Germany's DAX 30 index trades -0.08% lower at 11,460 levels, while the UK's FTSE 100 index drops -0.14% to 7,030. Among the other indices, the French CAC 40 index trades modestly lower around 4,830, while the pan-European Euro Stoxx 50 index trades muted near 3,270 points.