-Spain sells more debt than targeted
-Spanish 10 year bond yields rise by 8 basis points to 5.77%
-Spanish doubts continue to weigh on sentiment
-Large drop in French manufacturing PMI
-IMF may lower global GDP forecasts slightly
FTSE-Mibtel 30: -1.68%
Ibex 35: -0.95%
Stoxx 600: -0.15%
Equity benchmarks in the so-called core countries have finished off their lows, but periphery indices were generally considerably weaker throughout the day. This following weak economic data out overnight in Japan and China and alongside some slight weakness, this afternoon, Stateside.
Acting as a backdrop, there continues to be quite a bit of "market chatter" regarding the course of action which Spain will take to tackle its financial problems. The most recent line of speculation in this regard concerns the possibility that the country will employ what funds are left over from its bank bail-out to shore itself up, instead of asking Brussels (and Frankfurt) for a full-fledged bail-out. The EU however has today issued a statement indicating that those funds may only be employed to recapitalize banks.
Also regarding Spain, the country´s Prime Minister, Mariano Rajoy, has today decried a proposal for greater fiscal autonomy, by the regional government of Catalonia, as "unconstitutional," although he said that he is aware of that region´s current financial plight.
The Spanish Treasury sold 4.8bn euros in medium and long-term debt this morning, ahead of the 4.5bn it had targeted; demand for the former fell, although it did rise for the latter.
Cyclicals led losses
German manufacturer Daimler -the world´s third largest car-maker- forecast a second half drop in profitability at its automotive division.
French car maker Peugeot fell following a three notch downgrade from ratings agency Fitch.
Shares in Dutch Telenet Group surged 13% after Liberty Global made a $2.5bn offer to buy the shares
of the company which it does not already own.
From a sector stand-point the worst performers on the DJ Stoxx 600 are now: Basic resources (-1.68%), Automobiles (-1.44%) and Banks (-0.50%).
French manufacturing PMI, well below expectations
The Eurozone manufacturing sector purchasing managers index for the month of September has come in at 46 points, versus the 45.5 expected by the consensus.
The Dutch consumer confidence index for the month of September has come in at -29, versus -32 for the month before.
The French manufacturing sector purchasing managers index for the month of September has come in at 42.6, far below the previous month´s reading of 46.4.
The German manufacturing sector purchasing managers index for the month of September on the other hand rose to 47.3 points, after 44.7 in August (Consensus: 45.3).
Other asset classes also on the retreat
Front month Brent crude futures are falling by 0.259 dollars, to the 107.92 dollar
mark in ICE trading.
The euro/dollar is now off by 0.78% to the 1.2940 dollar mark.