LONDON (ShareCast) - - Chinese GDP data wallops stocks
- Gold and silver futures tumble
- German 'Wise men. argue for wealth tax
- Banks deposited 119.9bn euros overnight at ECB
Dax (Xetra: ^GDAXI - news) -30: -0.61%
FTSE-Mibtel 30: -0.81%
Ibex 35 (Madrid: INDI.MC - news) : -0.93%
Stoxx 600: -0.81%
After an initial feint higher European equities have turned lower. That comes on the heels of weaker than expected Chinese economic growth figures out over the weekend and against the backdrop of somewhat worrisome reports from Germany.
Chinese economic activity expanded at a 7.7% pace in the first three months of the year, well below the previous quarter´s 7.9% pace (Consensus: 8.0%). Whereas some market commentary points out that the recent quick expansion in the money supply should eventually buttress growth there are analysts who - at least as an initial reaction - have highlighted the quickened pace of moderation in industrial production.
At the time of writing gold futures are off by 4% and those for silver by another 6%. Those falls come on the back of a negative note out from Goldman Sachs (NYSE: GS-PB - news) late on Friday in which the broker reduced its gold price forecasts for this year and next.
For its part, JP Morgan has today cut its Chinese GDP growth and copper price forecasts for both this year and next.
Meantime, and in Germany, of the so-called 'wise men', as the most select group of government advisers is known, are now publicly arguing that there is enough wealth in homes and private assets across Southern Europe to cover 'bail-out' costs.
German auto parts and tyre maker Continental suffered a sharper-than-expected drop in first-quarter group sales, Euro am Sonntag reported, due to weakening core European car markets, as well as some extraordinary factors.
Deutsche Telekom (Xetra: 555750 - news) is higher after Bloomberg reported that US outfit Dish Network (NasdaqGS: DISH - news) Chairman Charlie Ergen proposed a merger with T-Mobile USA Inc. before Deutsche Telekom announced an improved bid for MetroPCS Communications Inc (NYSE: PCS - news) . on April 10th, citing people familiar with the situation said.
Nordic fashion giant Hennes & Mauritz AB, has reported a greater than forecast 4% fall in March revenues, albeit as a result of freezing weather which delayed the launch of its Spring clothes line-up.
From a sector stand-point the worst performance is now to be seen in the following industrial groups: Food (-0.69%), Automobiles (-0.69%), Basic resources (Frankfurt: A0JC0X - news) (-2.24%).
Eurozone trade data is to be released at 10:00.
Other asset classes little changed
The euro/dollar is now down by 0.23%, at the 1.3073 dollar mark.
Front month Brent crude futures, on the other hand, are down by 1.386 dollars to the 101.7 dollar level on the ICE.