European stocks downbeat amid eurozone concerns

European stock markets fell and the euro slipped against the dollar in early cautious trade on Wednesday amid lingering eurozone debt concerns despite Greece's new huge bailout. In morning deals, London's FTSE 100 eased 0.11 percent to 5,921.72 points, Frankfurt's DAX 30 slipped 0.40 percent to 6,880.33 points and in Paris the CAC 40 dipped 0.02 percent to 3,464.47. Madrid shed 0.55 percent and Milan lost 0.09 percent. The euro fell to $1.3225 from $1.3238 late in New York on Tuesday. "Even though Greece has gotten away with it and not defaulted eyes are still focused on the eurozone problems," said Jonathan Bristow, a broker at Valbury Capital, who added that there was concern over Italy and Spain's deficit woes. European stock markets had closed lower and the euro weakened on Tuesday as enthusiasm over another massive eurozone bailout for Greece faded on concerns more would need to be done. Dealers said that while the accord ticks all the boxes in terms of financing and Greek commitments, the nation's economy remains in parlous state and Athens faces a giant task in sticking to the plan. "The passing of the latest bailout plan for Greece, while a welcome relief to a market suffering from bailout fatigue, has to be tempered with the acceptance that the problem hasn't gone away, and for people to think it has would be naive in the extreme," said Michael Hewson, senior analyst at CMC Markets. "Scepticism about it succeeding remains high and Greece's April elections have the potential to be a major flash point, even if we get that far. The involvement of the IMF remains a key concern as EU leaders strive to build a firewall big enough to prevent a contagion to Italy and Spain," he added. Greece was on Wednesday seeking to finalise legislation tied to the eurozone bailout, with officials warning tough reforms mean a heavy workload and controversial constitutional changes. The programme has to go through as the country prepares for elections in April which pollsters say could fail to produce a clear majority, clouding prospects for later implementation of the accord. "A lot remains to be done, in the immediate future, to complete prior actions for the conclusion of the loan agreement expected in early March," Greek Prime Minister Lucas Papademos said after all-night talks in Brussels. Eurozone finance ministers sealed an unprecedented deal early on Tuesday to provide a new 237 billion euro ($310 billion) bailout designed to keep Greece in the single currency area. Parliament will vote Thursday on legislation to implement the deal, including a private creditor debt writedown, a Greek government source told AFP. Asian shares closed generally higher on Wednesday despite US and European markets giving Greece's crucial bailout only a lukewarm reaction. Tokyo rose almost one percent to the highest level in six-and-a-half months as exporters were boosted by a sliding yen. On Wall Street, the Dow Jones Industrial Average topped 13,000 points for the first time since May 2008 on Tuesday but later fell back to close nearly flat.