LONDON (SHARECAST) - -Germany insists next tranche of Greek aid be deposited in escrow account -Handelsblatt
-Merkel says legal basis for banking supervision not enough to activate ESM
-Samaras to give report at summit
FTSE-Mibtel 30: -0.30%
Ibex 35: -0.34%
Stoxx 600: 0.19%
European equities managed to close well off the day’s worst levels in the end, despite the mixed macroeconomic indicators released Stateside this afternoon. Helping stocks along was the better than expected data overnight in China –although some observers seem to be taking those statistics with a grain of salt. Investors also seem to be in a bit of a ‘holding pattern’ ahead of the results -tomorrow- of the European Council’s meetings, although no major decisions are supposedly expected to be taken.
The above after the French-led effort to quickly move to the creation of a European bank supervisor ran into German concerns over just how high the potential costs could end up running.
Perhaps best expressing current market sentiment, analysts at Unicredit were this morning commenting that: “Investors do not seem eager to ride a EUR-USD rally above 1.3169 peak, as there is no full solution in the current Spanish and Greek debate. A good result of today’s auctions in Spain could offer support.”
Spain’s Treasury today auctioned up to €4.61bn in medium and long-term debt, with significant drops in yields seen in all maturities.
To be had in account, yesterday the troika stated that it agreed with the Greek authorities on the core measures of the austerity package and expects a full agreement in the coming days. Financing issues will then be discussed between the official lenders and Greece.
No more drinks for Remy Cointreau
Nestle is retreating after the company reported nine-month sales growth that missed analysts’ estimates.
Likewise, Remy Cointreau -France’s second-biggest distiller- posted an improvement in first-half sales that fell short of forecasts.
From a sector stand-point the best performance was to be seen in the following industrial groups: Automobiles (1.07%), Basic Resources (0.99%) and Technology (0.75%). Food&Beverage stocks led losses, down by 1.52%.
Weak Dutch data
Dutch consumer confidence index worsened to -32 points in September, after -29 in the month before (Consensus: -27).
The Swiss trade balance improved to €2.01bn in September, after €1.73bn in the previous month.
Single currency shy this morning
The euro/dollar is now off by just 0.23% to the 1.3085 dollar mark.
Front month Brent crude futures are declining by 0.703 dollars to the 112.43 dollar level on the ICE.