Europe midday: France in recession



LONDON (ShareCast) - -Banks deposit 257.8bn euros overnight at ECB
-France in recession -BdF
-Noyer (ECB) says France right to keep budget deficit target

FTSE-100: -0.68%
Dax (Xetra: ^GDAXI - news) -30: -1.35%
Cac (Frankfurt: 924169 - news) -40: -0.59%
FTSE Mibtel 30: -1.06%
Ibex 35 (Madrid: IBEX.MC - news) : -1.32%
Stoxx 600: -0.73%

The main European equity indices are now registering moderate falls, tracking the overnight losses seen on Wall Street.

Acting as a backdrop, Greece´s Deputy Finance Minister has indicated that the country´s liquidity position is nearly exhausted. Meantime, other reports hold 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.

On a more positive note, the latest Chinese macroeconomic data releases have come in ahead of expectations.

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

German defence manufacturer Rheinmetall (Other OTC: RNMBF.PK - news) is 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 has 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 is now to be seen in the following sectors: Banks (-2.15%), Insurance (Euronext: SIN.NX - news) (-2.11%) and Utilities (Santiago: UTILITIES.SN - news) (-1.34%).

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 0.17% to the 1.2720 dollar level.

Front month Brent crude futures are currently off 0.103 dollars to the 107.13 dollar mark on the ICE.