Asmussen (ECB): Calm in financial markets is deceptive
Asmussen (ECB): Cannot give Greece more time
Rehn (EU): Expects Eurogroup to give Greece its support
FTSE Mibtel: -1.42%
Ibex 35: -0.94%
Stoxx 600: -0.81%
European equities have begun a data-light week lower. That after the World Bank cut its growth forecast for economic growth in "developing East Asia" this year to 7.2% from 8.3% in 2011, its slowest pace since 2011 and below the 7.6% forecast in May.
Furthermore, and acting as a backdrop, in its semi-annual World Economic Outlook (WEO)-slated for release tomorrow- the International Monetary Fund (IMF) is expected to cuts its forecast for world growth. This as some observers worry that "global rebalancing" is proceeding too slowly.
Of more immediate concern, investors are closely watching events in Greece and Spain. More specifically, European Central Bank (ECB) governing council member Jorg Asmussen has been cited as saying that Greece cannot be given more time -by the central bank- to meet its commitments as that would amount to state financing.
On a more positive note, European Union commissioner Olli Rehn believes that the Eurogroup will show its support for Greece when it meets today. Merkel's chief spokesman, Steffen Seibert, however, has been cited as saying that Greece must implement the measures agreed with the IMF and EU within the established timelines.
That comes before German Chancellor Angela Merkel visits Greece tomorrow.
From a sector stand-point, and on the corporate front, the worst performance is now to be seen in the following industrial groups within the DJ Stoxx 600: Automobiles (-1.87%), Basic resources (-1.64%) and Construction (-1.35%).
German exports rise more than expected
The Sentix survey of Eurozone investors´ confidence has come in at -22.2 for November (Consensus: -20.9), versus -23.2 for the month before.
The Swiss consumer price index for the month of September has come in at -0.4% year-on-year, as expected, and above last month´s reading of -0.5%.
The French central bank´s business confidence index for the month of September has come in at 92 points, versus 93 for the previous month (Consensus: 91).
The German trade surplus for the month of August rose to €16.3bn; ahead of the €15.3bn forecast by the consensus, that on the back of a 2.4% month-on-month increase in exports (Consensus: -0.5%).
Germany´s current account surplus on the other hand fell back towards €11.1bn in August, versus the €11.7bn seen in July.
Swiss unemployment remained unchanged at 2.8% in September.
Slight retreat in the single currency
The euro/dollar is now down by 0.57% to 1.2960.
Front month Brent crude futures are falling by 1.074 dollars to the 110.83 dollar
mark on the ICE.