- Investors debate timing of Fed tapering
- Euro/dollar near technical resistance
- Banks deposit 44.8bn euros at ECB overnight
FTSE 100: 0.42%
FTSE Mibtel 30: 0.00%
Ibex 35: 0.44%
Stoxx 600: 0.47%
The main European equity indices were registering small gains come midday, tracking the advances made overnight on Wall Street, but with investors having been left to wonder just where the recent goings-on in Capitol Hill leave expectations for Fed tapering.
Speeches from four speakers from the US Federal Reserve due out this afternoon may help to clarify the situation.
Nevertheless, sentiment 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 two quarters.
Having said that "[...] Leading indicators of activity suggest China's recovery ended in September," Nomura economists were telling clients. 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.
The recent tensions in the US political arena may lead the Federal Reserve to put off any tapering plans until even the end of the first quarter of 2014, many analysts think.
However, not all of them are of the same opinion. In that regard, the Financial Times on Friday morning referenced some according to whom a small tapering in December is still possible.
Others, such as Alpari UK's Craig Erlam, emphasised how the recent political tussle had shown just how weak the Republicans' hand is. Hence, one is left to wonder if the situation in the US Congress is in fact all that dangerous to begin with, he explained to Sharecast. Nevertheless, Erlam also sees Fed tapering being postponed until the end of the first quarter of 2014.
Linked to all of the above, the euro/dollar rose 1.10% to 1.3672 overnight, 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.
Cable also moved sharply higher on Thursday and was approaching levels of technical resistance too.
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 (1.46%), Personal and Household goods (1.17%) and Food and beverage (0.96%).
Brent bounces back
Front month Brent crude futures are rising by 0.926 dollars to the $110.14/barrel mark on the ICE.
The euro/dollar is now flat at 1.3680.
CAC 40 - Risers
Cap Gemini (CAP) € 47.28 +3.75%
Alstom (ALO) € 26.07 +3.53%
Accor (AC) € 33.41 +3.42%
L'Oreal (OR) € 126.30 +2.60%
LVMH (MC) € 140.10 +1.48%
Essilor International (EI) € 79.06 +1.23%
Danone (BN) € 53.16 +1.16%
Michelin (ML) € 79.98 +1.14%
Pernod Ricard (RI) € 88.87 +1.12%
Publicis Groupe Sa (PUB) € 59.53 +0.97%
CAC 40 - Fallers
Carrefour (CA) € 27.09 -1.97%
ST Microelectronics (STM) € 6.32 -1.34%
Veolia Environnement (VIE) € 13.35 -1.22%
GDF Suez (GSZ) € 18.72 -0.48%
ArcelorMittal SA (MT) € 11.64 -0.43%
Credit Agricole (ACA) € 9.18 -0.27%
AXA (CS) € 18.76 -0.24%
Legrand SA (LR) € 40.04 -0.24%
Technip (TEC) € 87.30 -0.22%
Orange. (ORA) € 10.35 -0.14%