LONDON (SHARECAST) - -Moscovici: Greece to be discussed tomorrow
-Italian DMO head says current bond yield levels manageable
-PIMCO (Balls) says Spain will ask for aid relatively shortly -Bbg
-PIMCO (Balls) says no longer underweight Spanish debt
FTSE Mibtel 30: 0.98%
Ibex 35: 1.31%
Stoxx 600: 0.81%
The main European equity benchmarks are now registering a strong bounce-back, more than reversing yesterday´s price action. That as New York equity futures resumed trading overnight, and actually turned positive.
More important, of course, millions have been left without power in the Mid-Atlantic and North-Eastern United States, but the floodwaters have receded from the streets of New York City. Nevertheless, the New York City Metropolitan Transit System may take weeks to return to normalcy and remains flooded, according to some reports. Even so, insurers are now amongst the best performers on the Continent, in apparent relief. As an aside, but worth monitoring, some of the first estimates available are putting the cost of the storm at approximately $20bn.
Acting as a back-drop, overnight the Bank of Japan approved a ninth consecutive increase in the size of its asset repurchase program. That following the release of very weak data on industrial production, consumer spending and the labour market.
Markets, however, had apparently been expecting firmer actions analysts say. Hence today´s fall in the benchmark Nikkei-225 and rise in the Yen.
According to the French Finance Minister, Pierre Moscovici, his country and Germany are working towards a complete solution of the Greek situation with November´s Eurogroup meeting in mind as the target date, although Greece´s plight will also be discussed at tomorrow´s summit.
Strong results out of Deutsche Bank
Shares of Deutsche Bank are now rising after reporting third quarter net profits of €747m, which came in well ahead of the €564m consensus forecast.
Shares of UBS are this morning tacking on another 5% after confirming plans to pursue cost cutting measures with an aim to lifting its return on equity –or on the funds its shareholders have invested- to at least 15% by 2015.
Allianz has raised its full-year operating profit target.
Denmark´s largest lender, Danske Bank, has announced its intention to sell $1.2bn (£745bn) in new shares.
From a sector stand-point the best performance can now be seen in the following industrial groups: Oil (1.95%), Automobiles (1.48%) and Insurance (1.45%).
German unemployment rises for first time in 3 years
German unemployment increased by 20,000 in October, ahead of consensus forecasts for a rise of 10,000. The unemployment rate came in at 6.9%, as expected, but the previous month´s level was revised up by a tenth of a percentage point. Last month´s increase was the first in three years.
Spanish gross domestic product contracted at a 0.3% quarter-on-quarter rate in the third quarter, less than the 0.4% contraction that had been foreseen.
The European Commission´s economic sentiment indicator for the Eurozone in the month of October fell to a three year low, at 84.5 points, after 85.2 for September (Consensus: 84.4).
Single currency holding above 1.29
The euro/dollar is now is now rising by 0.40% to the 1.2960 dollar mark.
Front month Brent crude futures are down by 0.45 dollars to the 108.95 dollar level.