European Indexes Lower; Swiss Money Supply Growth Eases

Arthi Gupta
22 Nov, 2010
New York City

European stocks slid after Ireland sought financial help from the EU and the IMF. French economic indicator rose in September. Swiss M3 money supply growth eased in October. Danish consumer confidence rose in November. Bulgaria''s unemployment rate fell in the third quarter.

[R]4:00 PM Frankfurt – European stocks slid after Ireland sought financial help from the EU and the IMF. French economic indicator rose in September. Swiss M3 money supply growth eased in October. Danish consumer confidence rose in November. Bulgaria''s unemployment rate fell in the third quarter.[/R]

World markets traded sideways after Ireland sought help from the International Monetary Fund and the European Union.

In Paris CAC 40 Index decreased 23.67 or 0.61% to close at 3,836.49 and in Frankfurt DAX Index edged lower 8.29 or 0.12% to close at 6,835.26.

Ireland Confirms EU-IMF Rescue Deal

Ireland confirmed that it requested for a major financial rescue package from the European Union and the International Monetary Fund to repair the country''s public finances. Prime Minister Brian Cowen announced on Sunday evening that a formal process of negotiation will now begin towards finalizing the rescue package.

Budget cutbacks totaling at least €15 billion over the next four years will be unveiled this week as part of Dublin''s budgetary strategy to address the deficit. The government is already poised to unveil €6 billion- worth of cuts in its 2011 Budget.

European finance ministers said in a statement that a rescue package to Ireland is warranted to safeguard financial stability in the euro-zone.

European Economic and Monetary Affairs Commissioner Olli Rehn welcomed Ireland''s decision.

French Economy Minister Christine Lagarde said on Monday that Ireland''s four-year economic plan and the EU/IMF bailout demonstrates Dublin''s determination to rebalance the economy and public finances.

Danske Bank economist Frank Oland Hansen said the bailout will be positive for the market. ""Given that total losses in the banking sector according to some pessimistic sources could double, it seems that a sizeable amount is needed to fully calm the markets,"" he said.

French Leading Index Rises

A leading indicator of the French economy increased sharply for the third consecutive month in September. The Conference Board Leading Economic Index for France increased 0.8% in September, following a 0.9% increase in August, and a 0.9% increase in July.

The coincident index, which is a measure of current economic activity rose 0.2% in September.

Swiss M3 Money Supply Growth Eases

Switzerland''s M3 money supply, the broadest measure of money supply in the country, climbed 6.1% annually in October, as against the downwardly revised 6.7% increase in September, the Swiss National Bank said on Monday.

M2 money supply growth eased to 8.4% in October from September''s revised 9.3% and M1 money supply grew 9.1% in October compared to September''s 10% increase.

Danish Consumer Confidence Improves

Denmark''s consumer confidence improved in November after falling in October, according to a survey data released by the statistics office today. The consumer confidence indicator climbed to 3.6 in November from 0.6 recorded in October.

Bulgaria Unemployment Rate Falls

Bulgaria''s unemployment rate fell to 9.5% in the third quarter from 10% in the previous quarter, the National Statistics Institute said on Monday. However, the rate was 2.8 percentage points higher than last year.

On an annual basis, the number of unemployed increased 92,100 to 326,600. The male unemployment rate was 10.1%, while the female unemployment rate was 8.8%.

Portugal''s Current Account Deficit Narrows

Portugal''s current account deficit narrowed to €11.99 billion during the January to September period from €12.8 billion recorded during the first nine months last year, Bank of Portugal said on Monday.

Direct investment surplus grew to €7.76 billion in 2010 from €991 million in 2009, while portfolio investment account moved to a deficit of €13.9 billion in 2010 compared to a surplus of €6.2 billion in 2009. Foreign investment was €1.9 billion in 2010, from €1.79 billion recorded last year.

Estonia PPI Rises

Estonia''s producer price inflation accelerated in October, led by an increase in prices for food and metal products, Statistics Estonia said on Monday.

Factory prices increased 5.1% on an annual basis in October, as against the 4.8% increase in September. On a monthly basis, producer prices grew 0.3% in October, influenced by a monthly increase in prices involved in food production.

Gainers & Losers

Banco Bilbao Vizcaya Argentaria SA slumped 4.37% to €7.90 after the Spanish bank said 98.2% of retail investors using BBVA as custodian have subscribed for its rights issue to finance the acquisition of a stake in Turkish bank.

Bilfinger Berger SE dropped 0.52% to €57.34 after the German builder renewed talks with Lend Lease Group over the sale of its Valemus unit, The Australian said.

The British Land Company Plc declined 0.73% to 492.70 pence after the property firm teamed up with pension fund manager Universities Superannuation Scheme to buy the Drake Circus shopping mall in Plymouth for over £230 million, the Financial Times reported.

H & M Hennes & Mauritz AB rose 0.70% to SEK 231.40 after the Sweden-based apparel retailer plans to open a store in Singapore.

Lafarge SA fell 1.21% to €44.84 after the cement maker will meet its 2010 divestment goal of €500 million to bolster its balance sheet, Chief Financial Officer Jean-Jacques Gauthier said.

Tesco Plc slipped 1.02% to 422.30 pence after the retailer increased outsourcing of garments and other products including food from India to meet its global requirements.