LONDON (AP) European stocks mostly moved sideways yesterday as Europe’s debt crisis loomed over markets, offsetting any optimism generated by Federal Reserve chairman Ben Bernanke’s suggestion that stimulus measures could be boosted.

In Europe, finance ministers from the 16-nation euro zone gathered to discuss ways to stabilise their currency union and avoid more expensive bailouts. Two top officials called for the creation of a new pan-European bond, while others will seek a boost to the bailout fund.

Britain’s FTSE 100 lost 0.4 percent to 5,770.28, while Germany’s DAX rose 0.1 percent to 6,954.38. France’s CAC40 was down a bare 0.04 percent at 3,749.23. Asian indexes closed mostly down.

In Brussels, finance ministers were haggling over a so-called European Stability Mechanism new rules for bailouts that are meant to force losses on private investors in some cases.

The governments are intent on winning over market confidence, which has eroded sharply in recent weeks, forcing the bailout of Ireland and hiking the market borrowing rates for fiscally weak countries like Portugal, Spain and Italy.

The worst of those fears were eased somewhat last week, when the European Central Bank announced it would extend its special liquidity support for banks and said its purchases of government bonds were ongoing. On Monday, the bank announced it had ramped up its purchases to 1.95 billion euros for the week ended November 30, the highest in months. Bond purchases support prices and push down interest yields that cash-strapped countries would have to pay if they went to markets to borrow.

But the ministers are aware that any market respite is likely to be fleeting as long as the underlying problem high debt and low growth is not addressed.

Yesterday, Moody’s Investor Service downgraded Hungary’s public debt ratings by two notches, warning the government’s budget policies were inadequate over the longer term.

Investor optimism was buoyed somewhat over the weekend by comments from Bernanke. He said the US central bank is prepared to buy even more than $600 billion in Treasury bonds over the next eight months if necessary to boost economic growth. That might trigger an influx of money into the markets of developing Asian economies as investors seek better returns.

Hopes for such a move “will have a good impact, at least in sentiment, because there would be further ‘hot money’ that will chase tangible assets,” said Peter Lai, investment manager for DBS Vickers in Hong Kong.