LONDON (SHARECAST) - -IMF warns of effects of austerity on Portuguese economy -WSJ
-Troika finds Greece needs 2 more years and lower interest rates
-Spanish 10 year bond yields flat at 5.57 per cent
Ibex 35: -0.16%
Stoxx 600: 0.26%
European stocks finished mixed today. That despite what appears to have been an avalanche of slightly better than expected US economic data this afternoon and following a veritable bevy of weak corporate announcements this morning.
On a more positive note, China's industrial output should grow faster in the last quarter of the year than in the third quarter, although the recovery remains clouded by uncertainty in export markets, the country’s Ministry of Industry has said today. Furthermore, the Japanese cabinet is expected to endorse a 700bn Yen stimulus package.
Acting as a backdrop, yesterday the US Federal Reserve reiterated that it will continue its purchases of MBS, and might undertake additional asset purchases if the outlook for the labour market does not improve substantially
Negative corporate announcements fail to dent sentiment
French engineer Schneider Electric has cut its full-year sales forecast following a worse than forecast performance in parts of Western Europe and a slow rebound in China.
German car maker Daimler warned it will miss its earnings forecast this year by about €1bn euros.
Interestingly, Dutch staffing firm Randstad has warned of falling sales in Continental Europe, especially France and Germany.
From a sector stand-point the best performance can now be seen in the following industrial groups: Travel&Leisure (1.51%), Financial Services (1.17%) and Retail (1.16%).
Eurozone money supply growth almost in-line
Eurozone money supply (M3) grew at a 3.0% year-on-year clip in September (Consensus: 3.1%).
Italian hourly wages rose by 0.1% month-on-month in September.
Spanish producer prices fell by 0.1% month-on-month in September (Consensus: 0.5%).
Slight gains in the single currency
The euro/dollar is down by 0.16% at 1.2950.
Front month Brent crude futures are now higher by 0.590 dollars to the 108.52 dollar level.