Europe midday: Stocks calm despite weak German and Italian data
Tue 07 Aug 2012
LONDON (SHARECAST) - -Banks deposit 311.7bn euros overnight at ECB
-Portuguese bank´s recourse to ECB diminished last month
-Improved bid-to-cover at EFSF bill auction
-Nokia up 5% on speculation over new smartphones
The main European equity benchmarks are now moving moderately higher than at the opening bell, with investors said to have shifted their sights to data expected out in China and the United States on Thursday.
Perhaps, but there is quite a bit of market chatter and commentary today regarding the supposed increased tensions between Italy and Germany.
That as the latest Italian gross domestic product growth data showed an 0.7% quarter on quarter contraction. While that is slightly better than forecast investors are rather pessimistic given recent purchasing managers´ data.
Italian industrial production and German factory orders figures released this morning have come in below expectations.
According to some commentators in the best of cases the data underlines the difficult situation in which Prime Minister Mario Monti finds himself, whereas in the worst it reflects the difficulties the country faces in returning to growth and meeting its deficit targets.
Basic resources head up gains
France is said to be pressing the European Commission to monitor South Korean exports, which could conceivably lead to a reintroduction of tariffs. Further south, in Italy, there seems to be speculation that Fiat could soon announce the closure of another one of its factories.
Munich Re has posted a second quarter net profit figure of €808m. The firm has raised its full-year target.
Avago Technologies is close to buying Schneider Electric SA's US-based sensors subsidiary, according to three people familiar with the matter, a deal that could fetch around $1bn for the French conglomerate, Reuters reports.
Dutch food and chemicals group DSM´s second-quarter operating profit has come in at the low end of expectations. The company has also announced €150m in cost-cutting measures.
From a sector stand-point the best performers now on the Stoxx 600 is to be seen in the following industrial groups: basic resources (1.61%), oil (1.51%) and utilities (1.35%).
Italian data underlines country´s predicament
Italian industrial production contracted at a 1.4% month-on-month pace in June (Consensus: -1.0%).
Italy´s gross domestic product fell at an 0.7% quarter-on-quarter rate in the three months to June less than the 0.8% contraction forecast by some.
German factory orders for the month of June dropped by 1.7% month-on-month (Consensus: -0.8%).
Euro at 1 month high
The euro/dollar is now up by 0.27% to the 1.2430 dollar mark.
Front month Brent crude futures are now rising by 0.905 dollars, to the 110.55 dollar per barrel mark on the ICE.