LONDON (SHARECAST) - -CSU wants Bundesbank to have veto on ECB Governing Council
-ECB could buy bond heavily for up to 2 month under OMT
-Spanish 10 year bond yields fall by 17bp to 5.74%
The Major European equity benchmarks finished Friday´s session registering large gains on the back of a better than expected September jobs report Stateside.
At least as important as the state of the US jobs market however, today investors have learned a few more details regarding the possible size and nature of the European Central Bank´s Outright Monetary Transactions (OMT).
The above is of particular importance for all those who are now ‘short’ on the Eurozone periphery as well as for authorities in Madrid in their attempts to gauge if a full rescue package would be necessary or not.
Another piece of good news is data showing that Italian banks´ recourse to the ECB fell in September.
From a sector stand-point the best performance is now to be seen in the following sectors withing the DJ Stoxx 600: Banks (1.80%), Automobiles (1.77%) and Construction (1.71%).
Shares of National Bank of Greece and Eurobank Ergasias were suspended after gaining 5% each. The two lenders are analyzing a possible merger in merger, To Vima reported, without citing anyone.
Mixed economic data
German factory orders contracted at a 1.3% month-on-month pace in August (Consensus: -0.5%).
Spanish industrial production fell at a 3.2% year-on-year pace in August (Consensus: -5.5%).
Crude futures drop
Front month Brent crude futures have ended the day down by 0,86 dollars to the 111.62 dollar mark.
The euro/dollar is flat, at the 1.3020 dollar mark.
