- Management at Carrefour and Metro positive
- KPN drops eight per cent as Slim pulls out
- Single currency moves towards resistance at 1.37
FTSE Mibtel: -0.14%
Ibex 35: -0.12%
Stoxx 600: -0.35%
European stocks have begun the session slightly lower as investors react coolly to the "fudge" on Capitol Hill. Although the worst scenarios have been avoided, markets may well have been expecting something more.
The agreement reached by US Congressmen will allow the United States to avoid what many believe would be a catastrophic default on US Treasuries and re-start the government - but only for the time being.
The government shutdown has only been postponed until January 15th and the debt ceiling extended until February 7th. Furthermore, negotiations to reduce the budget deficit must be concluded by December 13th.
Naturally, what everyone now wants to know is where this leaves the US Federal Reserve. It may also be interesting to hear what the ratings agencies have to say.
Acting as a backdrop, at least two large financial media outlets are commenting this morning on the exit by German Greens for coalition talks with Angela Merkel's CDU.
Germany's economic research institutes have leaked their joint economic forecasts to selected newspapers. The foresee an 0.4% increase in German gross domestic product in 2013, to be followed by 1.8% growth in 2014, the Suddeutsche Zeitung reports.
Various Italian unions are considering taking action to oppose government measures included in the budget, as the unions feel such measures would heavily penalise public sector employees (particularly via the wage/turnover freezes and extra pay cuts), according to La Repubblica.
Sulzer warns, KPN plummets
were off by 3.5% after the Swiss pump maker cut its full-year sales forecast for a second time
Mexican billionaire Carlos Slim has admitted defeat in his attempts to take over Dutch telecommunications outfit KPN for €7.2bn, sending the company's shares plummeting by 8%.
Grocery giant Carrefour saw supermarket sales in France grow again in the third quarter. Sales in China also improved.
German retailer Metro was similarly upbeat, announcing that revenues rose in its country. The firm is confident in its outlook for the Christmas period.
Thomson Reuters data shows that in the past two weeks, consensus expectations for 2013 earnings from Stoxx Europe 600 companies have been cut by 0.5% as analysts factor in profit warnings from companies such as Schindler, Chemring and Getinge.
From a sector standpoint the best performance on the Stoxx 600 is to be seen in the following industrial groups; food and beverage (1.37%), [ersonal and household goods (0.37%) and media (0.36%).
Light data calendar
Eurozone current account figures will be released by the European Central Bank (ECB) at 09:00.
Eurozone construction data for August will be forthcoming at 10:00.
Single currency moves higher
Front month Brent crude futures are lower by $0.308 to the $110.23 per barrel mark on the ICE.
The euro/dollar was higher by 0.59% to the $1.3620 level.