Europe midday: Strong data props up stocks

A.B. | ShareCast | 22 Jan, 2013 14:16 - Updated: 11:04 | | |

- German economic confidence rises to May 2010 highs - German financials hit by report on possible regulatory moves - Spanish bond yields drop

- German economic confidence rises to May 2010 highs

- German financials hit by report on possible regulatory moves

- Spanish bond yields drop

FTSE-100: -0.09%

Dax-30: -0.74%

Cac-40: -0.48%

FTSE Mibtel 30: 0.35%

Ibex 35: -0.38%

Stoxx 600: -0.17%

The main European equity benchmarks are now trading mixed on what has turned out to be a rather volatile day. Perhaps worth taking note of, a handful of strategists seem to have cooled slightly about the market.

Also worth pointing out, the Bundesbank this morning saw the need to deny rumours regarding the impending exit of its President, Jens Weidmann.

In turn, those reports came on the back of a rather lacklustre reaction to the Bank of Japan’s latest decision, overnight. Some traders nevertheless described the selling which ensued as simply some ‘profit taking,’ following the last few months' advances in equity markets.

Also weighing on stocks early on, particularly in Germany, was a report on BorsenZeitung that the country’s financial market regulator, BaFin, has asked lenders to run simulations on what the cost of a hypothetical break-up of their different business segments would be.

Compensating for the above was the release of a much better than expected reading on German economic confidence, courtesy of the ZEW Institute.

EADS confident

Siemens fiscal first quarter results were leaked to the press, the firm obtained profits to the tune of €1.3bn ($1.7bn), which was better than expected.

French power and transport engineering company Alstom said orders rose 3% in the third quarter.

EADS, the European aerospace and defence group achieved a "very significant improvement" in revenue and operating profit in 2012, Chief Executive Tom Enders said.

From a sector stand-point the worst performance was to be seen in the following industrial groups: Construction (-0.76%), Media (-0.70%) and Telecommunications (-0.59%).

Very strong reading on German economic sentiment

The ZEW Institute’s economic sentiment index for the month of January has come in at 31.5 points, up by 24.6, to its highest level since May 2010.

Single currency flat

The euro/dollar is now trading 0.02% lower at 1.3310.

Front month Brent crude futures are rising by 0.357 dollars, to the 111.60 dollar per barrel mark on the NYMEX.


More news

22:40 Actavis to compete with Sanofi in Omega Pharma deal

Actavis Plc is among the bidders for Omega Pharma NV as the US-based drugmaker continues to look for more acquisitions.

21:59 FTSE 100 movers: Tesco rises on reports profit mis-guidance was limited

Travel stocks were putting in a decent performance on Monday, following recent volatile trading amid the growing Ebola crisis.

21:53 Apple Q3 results soar past estimates after strong iPhone sales

Apple Inc. said its quarterly profit rose 13%, as sluggish iPad sales were offset by strong demand for its new larger-screen iPhones.

21:36 Texas Instruments trounces forecasts, shares rise 4%

21:35 Apple forecasts Q1 sales between $63.5bn to $66.5bn, exceeding analysts' forecast

21:31 Treasury Committee welcomes BoE's decision to appoint reviewer following RTGS issue

Andrew Tyrie, the chairman of the Treasury Committee, has written to the Mark Carney, the Bank of England (BoE) governor in response to a Real Time Gross Settlement (RTGS) payment system issue the bank suffered on Monday.

21:31 US close: Markets move higher, but IBM weighs on Dow

US stocks moved higher on Monday after a relatively slow start, as investors were set to focus on companies’ earnings, including Apple's, due after the close of trading.

21:25 Apple rises 0.24% after closing bell, ahead of conference call at 22:00

21:44 Chipotle Q3 revenue rises to $1.08bn from $826.9m in Q2

20:02 Facebook sues law firms over dispute related to company's ownership

On Monday, Facebook sued four separate law firms over their involvement in a case challenging Mark Zuckerberg's ownership of the social media giant.



Ebola latest: IMF downgrades forecast for sub-Saharan Africa

Welcome to our rolling coverage of the Ebola crisis.


EUR/USD: continues its clearly bearish trend