Date: Wednesday 13 Jun 2012
-France will press for banking union
-Greek deposit outflows may have risen to €700m per day-Bbg
-Danish Finance Minister prefers ESM for Spain rescue
-Iran foreign minister said to be optimistic on nuclear talks
-Some EZ officials said to back stringent conditions for Spanish banks
Stoxx 600: -0.36%
The main European equity benchmarks finished the day with slight falls. That ahead of important macroeconomic data expected out Stateside this afternoon and following generally as-expected debt auction results in Italy and Germany this morning.
Nonetheless, there continues to be a certain lingering feeling among some investors that countries like Germany and Finland continue to hold out longer than convenient on the need for fiscal discipline and reforms. Precisely in this regard, some market commentary has called attention to remarks from the German finance Minister, Wolfgang Schaeuble, in daily La Stampa, to the effect that Italy must continue ahead with its reform drive.
Germany sold €4.04bn euros of 10-year bunds at an average yield of 1.52%, up from a rate of 1.47% the last time around. Italy’s borrowing costs surged at a sale of €6.5bn of 1 year Treasury bills. The bills were sold at a rate of 3.97% versus the 2.34% seen at the last auction.
Of interest, yields on most long-term Eurozone bonds headed modestly higher today, with German ones at the fore.
Acting as a backdrop, the World Bank lowered its forecast for economic growth to 2.5% in 2012, from the 6.1% expansion seen last year and 7.4% growth in 2010. That as the Eurozone crisis weighs on activity levels. No less relevant, certainly, the nervousness ahead of this next weekend's elections in Greece.
From a sector stand-point the worst performers on the DJ Stoxx 600 were: construction (-1.29%), industrial goods (-2.14%) and automobiles (-2.17%).
or share it with one of these popular networks:
You are here: news