Europe midday: Stocks rise as ECB purchases Italian covered bonds

European stocks were comfortably in the blue come midday on Tuesday following the release of slightly stronger-than-expected economic data overnight in China.

At 7.3% the year-on-year rate of economic growth out in China printed slightly above economists’ forecasts. Nevertheless, analysts were divided, with some highlighting the fact that the figures mark the slowest rate of expansion in five years.

The Dax was moving ahead by 1.42%, while out on the periphery the FTSE Mibtel was gaining 2.44%. Madrid’s Ibex 35, a relative laggard in the early going, had also picked up steam by noon to rise by 1.84%.

The European Central Bank (ECB) was said to have purchased Italian covered bonds on the second day of its programme of asset backed security purchases. Italian 10-year government bond yields were to be seen eight basis points lower at 2.5% as a result. On Monday they rose by 10 basis points as the ECB reportedly began buying French and Spanish securities.

Better-than-expected results out from tech heavyweight Apple overnight also contributed to improved market sentiment as well. The tech giant’s shares ended the after-hours session on Wall Street up by 1.5%.

Commenting on the company’s figures, Morgan Stanley said in a research note: “We see strong iPhone demand, gross margin expansion, and under-ownership driving upside to shares. Results and guidance were better than expected despite FX headwinds pressuring estimates across large-cap tech.”

The US broker upped its price target on the stock to $115 per share from $110 previously.

Total steady despite losing its chief

Shares of Total were down by 0.06% to €42.92. The French oil major's chairman and chief executive officer, Christophe de Margerie, died overnight in Moscow.

The jet in which he was travelling crashed into a snowplough while manoeuvring for take off at Moscow's Vnukovo airport with low visibility.

Swiss drugmaker Actelion raised its full-year forecast again, lifting its expected rate of growth for earnings per share to a low-20s percentage point range at constant exchange rates.

Mortgage lender Swedbank posted third-quarter net income and net interest income that surpassed analysts’ estimates.

From a sector standpoint the best performance on the DJ Stoxx 600 was to be seen in the following industrial groups: banks (2.3%), oil and gas (2.15%), and automobiles and parts (1.93%).

Money supply growth picks up slightly in Switzerland

Swiss money supply grew at a 3.4% year-on-year pace in September, versus the previous month’s figure of 3.3%.

Crude moves higher

The euro/dollar was slipping 0.26% to 1.2760.

Front-month Brent crude futures were higher by 0.559% to $85.99 per barrel out on the ICE.