Europe’s main stock markets ended a day of see-saw trading with losses yesterday as investors reacted to an announcement by Spain’s Prime Minister that it would not soon seek a financial bailout.

London’s benchmark FTSE 100 index of top companies closed 0.19 per cent lower at 5,809.45 points.

Frankfurt’s DAX 30 was down by 0.28 per cent at 7,305.86 points while the Paris CAC 40 fell by 0.60 per cent to 3,414.23 points. But in Madrid, the IBEX 35 index gained 1.07 per cent to 7,867.10 points.

Spain is not planning to make an imminent demand for a sovereign bailout from the eurozone to end its financial crisis, Prime Minister Mariano Rajoy said in Madrid.

Investors have expected Spain to formally apply for a full bail-out, in hopes that it would draw a line under the eurozone debt crisis.

“The market is just waiting for that,” Global Equities trader Xavier de Villepion said. “Since mid-September, the French CAC 40 “has alternated sessions of gains and losses based on rumours and hopes on the subject,” he added.

In foreign exchange trading, the euro climbed to $1.2941 from $1.2896 late in New York on Monday. Gold prices edged down to $1,779.30 an ounce from $1,787 an ounce on Monday.

Gold, seen as a haven in times of economic unrest, hit an 11-month high point of $1,791.45 an ounce on Monday before traders banked profits.

“The ongoing sovereign debt crisis in Europe and a US economy struggling to recover at a more meaningful pace are good enough reasons to support the precious metal for now,” said Simon Denham, head of Capital Spreads trading group.

In New York, key US stocks showed losses in midday trading, with the Dow Jones Industrial Average down by 0.51 per cent at 13,446.27 points.

The broad-based S&P 500 had slipped by 0.22 per cent to 1,441.33, while the tech-rich Nasdaq Composite was flat at 3,112.13.

“US equities are trading near five-year highs but numerous measures show investors remain skeptical,” analysts at the Charles Schwab brokerage noted. “Economic data remain mushy but we believe the positive trend will continue, with some blips along the way,” they added.

In Asia, the stock markets were mixed earlier in the day, with Tokyo down by 0.12 per cent at 8,786.05, Seoul flat at 1,996.03 and Sydney jumping by 1.01 per cent to 4,433.0.

Hong Kong, Shanghai and Mumbai were closed for public holidays.