- European equities establish fresh five year highs
- Investors debate timing of Fed tapering
- Euro/dollar near technical resistance
- Gold to fall below 1,100 dollar
per ounce level, SocGen says
FTSE 100: 0.71%
FTSE Mibtel 30: 0.38%
Ibex 35: 0.84%
Stoxx 600: 0.79%
European equities closed at fresh five year highs on Friday, tracking the gains seen on Wall Street. A fair bit of market commentary is referencing the possibility that the start of Fed tapering will be postponed until the end of the first quarter of 2014 as the trigger behind today's advance.
Speeches from three speakers from the US Federal Reserve, due out later this evening, may help to clarify the situation.
Sentiment also seems to have received a small boost this morning following the release of in-line Chinese gross domestic product (GDP) data showing a 7.8% rate of expansion, slightly higher than in the previous quarter.
Having said that "[...] Leading indicators of activity suggest China's recovery ended in September," Nomura economists were telling clients following the release of the above data.
They pointed out how electricity production - often regarded as a better indicator of real economic activity - fell "sharply" in September, by 13.6% on the month after a 4% rise in August.
Linked to the apparent change in expectations for Fed policy, the euro/dollar rose 0.15% to 1.3692, nearing technical resistance towards 1.3710. Worth noting, the European Central Bank is believed to not be at all content to watch the single currency appreciate excessively.
Schindler announces stock buy-back programme
Elevator maker Schindler has announced that it is to spend as much as 1.06bn francs in a modified share buyback program.
Alken Asset Management has sold a 2.7% stake the Spanish manufacturer of blood-plasma products Grifols. After Thursday's close UBS said it placed the shares
to institutional investors at €29 each.
Europe's largest hotel group by sales, Accor, unveiled accelerating revenue growth for the third quarter.
The French auto parts supplier Valeo said revenue rose by 2.2% in the third quarter, as Brazilian and Japanese sales took a hit from adverse currency movements.
From a sector standpoint the best performance was to be seen in the following industrial groups within the DJ Stoxx 600: Travel&Leisure (1.97%), Personal and Household goods (1.90%) and Food and beverage (1.41%).
The Belgian central bank's consumer confidence index for the month of October has improved slightly, to -6 from -7 in the month before.
Gold to fall below $1,100/ounce, SocGen says
Front month Brent crude futures are rising by 0.429 dollars to the $109.59/barrel mark on the ICE.
Of interest, analysts at Societe Generale on Friday forecast that the price of gold will end the year at $1,200/ounce and move below $1,100/ounce next year. Of possible interest, they pointed out the risk that hedging from producers could result in a quick move lower.
The euro/dollar is now up by 0.15% to the 1.3692 mark.
CAC 40 - Risers
Cap Gemini (CAP) € 48.06 +5.46%
Alstom (ALO) € 26.50 +5.24%
Accor (AC) € 33.61 +4.04%
L'Oreal (OR) € 127.50 +3.57%
Safran (SAF) € 45.67 +2.73%
Schneider Electric (SU) € 62.20 +2.59%
Lafarge (LG) € 50.40 +2.58%
Kering (KER) € 172.10 +2.38%
LVMH (MC) € 141.00 +2.14%
Michelin (ML) € 80.74 +2.10%
CAC 40 - Fallers
GDF Suez (GSZ) € 18.56 -1.30%
ST Microelectronics (STM) € 6.33 -1.14%
Carrefour (CA) € 27.36 -0.99%
Credit Agricole (ACA) € 9.14 -0.64%
Veolia Environnement (VIE) € 13.47 -0.37%