- FOMC may raise rates a bit sooner than expected
- German CPI surprises on the upside
- Juncker named new head of European Commission
FTSE 100: 0.34%
CAC 40: -0.06%
FTSE MIB: -0.30%
IBEX 35: -0.26%
Stoxx 600: 0.03%
Stocks finished the day little changed despite the release of a considerably higher-than- expected reading on German consumer prices, in part due to a bounce-back after May's half a percentage point drop.
That came as European Union leaders chose Jean-Claude Juncker, a well-known federalist, by a very ample majority to be the new head of the group.
Although the details of the selection process are not known Britain's Prime Minister wryly noted that "I've told EU leaders they could live to regret the new process for choosing the Commission president".
Stocks traded in a mixed fashion since the very start of the session, with some market commentary attributing the wobble to remarks from the President of the St.Louis Fed, James Bullard, to the effect that the US central bank's main policy rate might have to rise by as soon as March of 2015.
Indeed, in that same vein Capital Economics explained to clients in a morning note that the US Federal Reserve might well opt to bring forward its first rate hike a bit. However, the Fed is likely to raise rates more rapidly than the Bank of England, leading to a significant divergence in rates during 2016, the think-tank added.
To take note of the European Union also signed wide ranging trade-and-political agreements with three of Russia's neighbours, Ukraine, Georgia and Moldova, which may irritate Moscow considerably.
Rolls Royce to be named sole supplier for A330neo
Airbus may be very near to naming Rolls Royce as the sole supplier of engines for the upgraded version of its A330, Reuters reports.
Large banks have begun to take funds out of Barclays' 'dark pool' after the British lender was sued by New York's top securities regulator, the Financial Times reports.
From a sector stand-point the best performance was logged by the following industrial groups within the DJ Stoxx 600: Financial services (0.51%), Health care (0.35%) and Industrial Goods&Services (0.32%).
German CPI doubles forecast
Harmonised German consumer prices advanced at a 0.4% month-on-month (1% year-on-year) pace during the month of June, according to a preliminary estimate from the German finance ministry (consensus: 0.7%).
The European Commission's economic confidence indicator for June slipped to 102 from 102.6 in the previous month (consensus: 103).
During the first three months of the year French gross domestic product was flat in terms of quarterly rates of change, as expected.
Spain's consumer price index edged higher at a 0.1% year-on-year clip during the month of June (consensus: 0.2%), down from May's 0.2% pace.
Crude futures move lower
The euro/dollar is up slightly, by 0.14% to $1.3632.
Front month Brent crude futures were down by 0.01% to the $113.19/barrel mark on the ICE.