-German constitutional court (GCC) will not delay decision
-50% chance US may tap strategic oil reserves -Citi
-Barroso to present bank supervision plan tomorrow
-Goldman Sachs prefers emerging markets over Europe
-Italian 10 year bond yields close 10bp lower at 5.08%
FTSE-Mibtel 30: 0.84%
Ibex 35: 0.93%
Stoxx 600: 0.33%
The main European equity indices ended the day generally higher, ahead of the much awaited ruling from Germany's constitutional court, tomorrow morning.
All of the above after a last minute objection, last night, from a German lawmaker threatened to derail the announcement by the GCC of its decision as regards the country´s participation in the so-called European Stability Mechanism (ESM). Finally, however, the court has announced this morning that a decision can be expected for tomorrow, as initially planned.
Nevertheless, some observers are warning that "the devil may be in the details."
That as Spain´s Prime Minister has said that his country will not accept Europe telling it how to specifically allocate its money, although it is willing to meet any targets set. In any case, no decision has yet been taken as regards asking Europe for a rescue.
For his part, German Finance Minister Wolfgang Schaeuble has stated that Spain need not apply for a full program because economic and fiscal progress made since implementing reforms means that a full bailout isn't necessary, Bloomberg reported.
Deutsche Bank raises RoE target
From a sector stand-point the best performance on the DJ Stoxx 600 was to be seen in the following sectors: Banks (1.10%), Automobiles and parts (1.09%) and Construction and chemicals (0.91%).
Lighting giant Philips is to eliminate 2,200 additional jobs so as to wring an extra €300m in savings to compensate for the deterioration in the economy.
That came on the heels of a profit-warning from Burberry and lay-off announcements at Hewlett Packard and BHP Billiton overnight.
Vestas Wind Systems, the biggest maker of wind turbines, dropped sharply after Credit Suisse Group said the company may undertake a rights offer with a large discount.
Spanish natural gas concern Enagas sank as investor Sagane Inversiones sold a 5% stake.
Luxury good outfits PPR and Cie. Financiere Richemont were caught in the downdraft from Burberry´s warning even though some analysts highlighted that they trade at lower PE multiples.
Deutsche Bank, Europe's largest, will cut costs by €4.5bn in a bid to boost profitability despite higher capital requirements and Europe's debt crisis. Deutsche Bank will seek to increase its after-tax return on equity (RoE) to at least 12% by 2015, the Frankfurt-based lender said in a statement today, from 8.2% in 2011.
German prices above forecasts
German wholesale prices rose by 1.1% month-on-month in August (Consensus: 0.3%).
French non-farm payrolls were down in by 0.1% in the second quarter, as expected.
Unemployment in the OECD area worsened by a tenth of a percentage point in July, to 8.0%.
Single currency moves higher ahead of GCC decision
The euro/dollar is now rising by 0.84% to the 1.2860 dollar
mark. UBS has today raised its 1 month forecast for the single currency -in its cross versus the US dollar- to 1.3.
Front month Brent crude futures are falling by 0.131 dollars, to 114.66.