Europe close: Equities finish mixed



LONDON (ShareCast) - -European official says will help Greece in coming weeks -Bbg
-France in recession -BdF
-Noyer (ECB) says France right to keep budget deficit target
-Weidmann (ECB) says German inflation will stay below 2 per cent next year
-Banks deposited 257.8bn euros overnight at ECB

FTSE-100: -0.11%
Dax (Xetra: ^GDAXI - news) -30: -0.58%
Cac (Frankfurt: 924169 - news) -40: 0.47%
FTSE Mibtel 30: -0.09%
Ibex 35 (Madrid: IBEX.MC - news) : 0.16%
Stoxx 600: -0.11%

The main European equity indices closed in a mixed fashion today, first tracking the losses seen overnight on Wall Street, and then the bounce which ensued in US stocks this afternoon.

Acting as a backdrop, Greece´s Deputy Finance Minister this morning indicated that the country´s liquidity position is nearly exhausted. Meantime, however, other reports held that Greece may attempt to roll-over €5bn in T-bills on November (Xetra: A0Z24E - news) 16th due to possible delays in the release of financial aid.

Fortunately -perhaps- an EU official has been cited as saying that Greece will get help to make it through to the receipt of the next Troika report on the country.

On a more positive note, the latest Chinese macroeconomic data releases, out last night, came in ahead of expectations. Similarly, US data out today also turned out to be stronger than forecast.

Banks led on the downside

French lender Credit Agricole (Milan: ACA.MI - news) sank after posting a wider third-quarter loss than analysts had estimated.

German defence manufacturer Rheinmetall (Other OTC: RNMBF.PK - news) was off by 8%. The firm has cut its full-year sales forecast to €4.8bn from €4.9bn before.

Novo Nordisk A/S rallied 7.8% as a US Food and Drug Administration (FDA) advisory panel backed its insulin treatment, a product which is increasing in demand as diabetes grows as a health risk around the world.

Luxury goods company Cie. Financiere Richemont unveiled better than forecast first-half profits on the back of increased sales of jewelry to Asian tourists.

From a sector stand-point the worst performance on the DJ Stoxx 600 was seen in the following sectors: Banks (-1.18%), Insurance (Euronext: SIN.NX - news) (-1.05%) and real estate (-0.91%).

French recession now on the cards
France´s central bank now sees the country´s gross domestic product (GDP) contracting at a -0.1% quarter-on-quarter pace in the last two quarters of the current year.

Italy´s industrial production dropped at a 1.5% month-on-month pace in September (Consensus: -1.6%).

French manufacturing output fell by 3.2% month-on-month in that same month (Consensus: -1.3%), led by an 11.3% drop in production from the transport sector and a 16.2% fall in that of automobiles.

According to the French Statistics Office (INSEE) the country´s manufacturing production was down by 1.9% year-on-year in the third quarter, while output from the transportation sector was off by 0.2%.

INSEE´s French business confidence index for the month of October stayed at 92 points (Consensus: 90).

Germany´s consumer price index for the month of October increased at a year-on-year rate of 2%.

The single currency is now retreating
The euro/dollar is now down by 0.21% to the 1.2717 dollar level.

Front month Brent crude futures are currently rising by 2.046 dollars to the 109.49 dollar mark on the ICE.


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