Europe midday: Eurozone banks could ask ECB for €1tn in loans
LONDON (ShareCast) – -Several private equity firms said to be eyeing Monte dei Paschi (Milan: BMPS.MI – news) .
-Nokia Siemens to shed 2,900 German staff.
-German unemployment falls to 2 decade low.
FTSE-100: 0.76%
Dax (Xetra: ^GDAXI – news) -30: 1.06%
Cac (Frankfurt: 924169 – news) -40: 1.50%
Ibex 35 (Madrid: IBEX.MC – news) : 0.53%
Mibtel-30: 1.57%
European equities are now trading higher and bouncing back nicely from yesterday’s losses. The reason? Judging by market commentary it simply seems to be a question of risk appetite holding up, perhaps due to the relative stability seen in risk premia in some of the bigger countries of the Eurozone periphery, such as Italy and Spain.
That ahead of the release of several more macroeconomic indicators in the United States this afternoon. As well, and to a certain extent, investors may be biding their time ahead of this next Friday’s US employment report.
Also worth mentioning, at least at first glance the report in this morning’s FT regarding Eurozone banks’ intention of strongly increasing their recourse to long-term financing from the European Central Bank seems rather more innocuous (although perhaps more positive in a way) than was being reported by some, although the sums being bandied about are enormous. Goldman Sachs (NYSE: GS – news) , for example, sees banks “easily” bidding for another trillion euros in financing, versus the €489bn sought the last time around.
From a sector stand-point the best performers now are: oilgas (1.75%), insurance (1.72%) and construction stocks (1.59%).
EQUITIES
Outokumpu (Dusseldorf: 472618.DU – news) will buy ThyssenKrupp (Xetra: 750000 – news) ‘s stainless steel unit Inoxum for around €2.7bn in a cash-and-share transaction.
UBS (NYSEArca: DJCI – news) has raised its recommendation on shares of EADS (Other OTC: EADSF.PK – news) to buy from neutral.
MACROECONOMY
German unemployment fell by 34,000 in January (Consensus: -10,000).
German retail sales fell by 1.4% on the month in December (Consensus: 0.8%).
French consumption retreated by 0.7% on the month in December (Consensus: 0.2%).
French producer prices fell by 0.1% on the month in December, as expected.
Spanish CPI falls to 2.0% on the year in January (Consensus: 2.3%).
OTHER MARKETS
Front month Brent crude futures are now rising by 0.673% to the $111.51 mark on the ICE.
The euro/dollar is moving up slightly, by 0.28%, to the 1.3178 dollar level.
AB
Article source: http://uk.finance.yahoo.com/news/europe-midday-eurozone-banks-could-132400603.html
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