Europe open: KPN craters after results of Dutch spectrum auction

RELATED QUOTES

SymbolPriceChange
KPN.AS2.51+0.01
^GDAXI9,548.68+4.49

LONDON (ShareCast) - - Banks deposited 225.06bn euros overnight at ECB

FTSE-100: -0.57%
Dax (Xetra: ^GDAXI - news) -30: -0.23%
Cac-40: -0.69%
FTSE Mibtel 30: -0.29%
Ibex 35: -0.18%
Stoxx 600: -0.37%

The main European equity benchmarks were registering slight falls at the start of trading, 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.

In European news, Germany´s central bank - the Bundesbank - forecast on Monday morning 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 (Amsterdam: KPN.AS - news) craters

Shares of KPN were 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 euros.

From a sector stand-point the worst performing industrial groups were: Telecommunications (-1.75%), Banks (-0.62%) and Healthcare (-0.57%).

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 dropped 0.10% to the 1.3150 dollar level.

Front month Brent crude futures were falling by 0.24% to the 107.92 dollar per barrel mark on the ICE.

AB