European Stocks Choppy As Investors Eye Greece

--Investors try to gauge impact of Greek credit event
--China trade deficit also causes jitters
--Euro slightly weaker versus dollar; all eyes on finance ministers' meeting


LONDON -- European stocks were moving between small losses and gains Monday as investors tried to get to grips with the latest news on Greece after the International Swaps and Derivatives Association on Friday declared a credit event had occurred with Greece's debt, while basic resources stocks nudged lower following disappointing Chinese data.

At 0900 GMT, the benchmark Stoxx Europe 600 index was flat at 265.33. The Stoxx 600 basic resources index was the biggest sector decliner, falling 0.5% after China posted a surprisingly high $31.48 billion trade deficit for February, following a $27.28 billion surplus in January.

Elsewhere, London's FTSE 100 was 0.1% lower at 5882.47, Frankfurt's DAX was up 0.1% at 6884.83 and Paris's CAc-40 was up 0.1% to 6884.83.

Investors were weighing up what the Greek credit event means going forward, following the announcement by the ISDA.

Societe Generale said: "This helps the integrity of the credit default swaps market but adds to the nervousness in markets.

"Netting out exposure in Greek CDS [credit default swaps] will provide scope for speculation about whether this can open a can of worms and with the precedent of a euro zone default now having been set, some will wonder if this increases risk of contagion. So yet another Monday morning starts with a slight risk-off mood."

These issues overshadowed better-than-expected nonfarm payrolls data, issued Friday. U.S. stocks closed with modest gains Friday, with the Dow Jones Industrial Average ending up 0.1% at 12,922.02 and the S&P 500 0.4% higher at 1370.87.

Meanwhile, corporate news was thin on the ground. Volkswagen shares fell 0.2% after it said it expected that operating profit in 2012 will likely be on last year's level as higher costs for new technology offset a rise in vehicle sales and revenue. Separately, Volkswagen Chief Executive Martin Winterkorn said all parties are working at "full speed" to fully integrate Porsche Automobil Holding SE's sports car business into Europe's largest auto maker. But he admitted there were "still some hurdles" and did not elaborate on a timeframe for the integration.

Earlier, Asian stock markets finished mostly lower Monday as investors continued to fret over China's growth outlook and Greece's debt situation, keeping financials and most resources stocks on the back foot, though a weaker yen lifted exporters in Japan.

Japan's Nikkei Stock Average and Australia's S&P/ASX 200 declined 0.4% and South Korea's Kospi Composite declined 0.8%. Hong Kong's Hang Seng Index gained 02%, while China's Shanghai Composite fell 0.2%.

In foreign exchange markets, the dollar was well supported as Friday's jobs report diminished expectations of further easing steps from the Federal Reserve. But the ISDA's decision kept the euro under pressure.

At 0900 GMT, the single currency was at $1.3114 against the greenback, from $1.3122 late Friday in New York. The dollar was at Y82.20, from Y82.44.

Spot gold was at $1,705.10 per troy ounce, down $7.00 from its New York settlement on Friday. April Nymex crude oil futures were down $0.69 at $106.71 per barrel and Brent oil futures were down $0.63 at $125.35. The June bund contract was up 0.10 at 138.58.

There are no economic data of note for the euro zone expected Monday, but European finance ministers are expected to meet around 1600 GMT to approve Greece's second bailout deal.