Europe midday: Italy and Spain hold steady

RELATED QUOTES

SymbolPriceChange
KPN.AS2.47+0.06
PEU.HM12.94-1.06
^GDAXI9,409.71+91.89

LONDON (ShareCast) - - Peugeot (Hamburg: PEU.HM - news) leads gains on the Stoxx 600
- Shares of KPN (Amsterdam: KPN.AS - news) crater
- Banks deposited 225.06bn euros overnight at ECB

FTSE-100: -0.49%
Dax (Xetra: ^GDAXI - news) -30: -0.03%
Cac-40: -0.36%
FTSE Mibtel 30: 0.13%
Ibex 35: 0.07%
Stoxx 600: -0.25%

The main European equity benchmarks were registering slight falls by the midday mark, despite news that the Liberal Democratic Party (LDP) had won in this past weekend´s elections in Japan. The LDP has been a fierce critic of the Bank of Japan, pressuring it to carry out a more aggressive monetary policy.

Market commentary is linking the selling pressure in equities to doubts and worries regarding the outlook for the US fiscal cliff; more specifically, the possibility that any agreement might get pushed out beyond year-end.

In European news, Germany´s central bank - the Bundesbank - has today forecast that the country´s phase of economic weakness could "soon be over," even if it does expect a "noticeable" contraction in fourth quarter gross domestic product.

KPN craters

Shares of KPN are cratering by 14% after it became know that the company paid a total of €1.352bn to secure 120MHz of spectrum, including 20MHz of 800MHz spectrum. The price is significantly higher than what had been expected by analysts. Nomura, for example, had factored in a price of €500m.

PSA Peugeot Citroen was rallying 16%, for the biggest gain on the Stoxx 600, after revealing it is close to finalizing a deal with a pool of banks to refinance debt at its banking unit.

From a sector stand-point the best performing industrial groups now were: Retail (0.77%), Automobiles (0.69%) and Basic resources (0.61%).

Trade surplus contracted in October

Labour costs in the Eurozone rose at a 2.0% year-on-year clip in the third quarter, according to Eurostat.

The Eurozone trade surplus fell to €7.9bn in October, from a revised level of €11bn in the month before (Consensus: €11bn).

Slight drop in the single currency

The euro/dollar was dropping 0.07% to the 1.3160 dollar level.

Front month Brent crude futures were rising by 0,120 dollars to the 108.31 dollar per barrel mark on the ICE.

AB