Yearly Losses: DAX in Germany Down 15%, CAC in Paris Falls 18%

Arthi Gupta
30 Dec, 2011
New York City

European markets edged higher after German Finance Minister Wolfgang Schaeuble ruled out a breakup of the euro area. France planned to raise between

[R]1:30 PM Frankfurt – European markets edged higher after German Finance Minister Wolfgang Schaeuble ruled out a breakup of the euro area. France planned to raise between €7 billion and €8 billion from its first long-term debt auction on January 5. Spanish inflation eased in December.[/R]

The European indexes edged higher after the German Finance Minister Wolfgang Schaeuble said in an interview to the German newspaper Handelsblatt on Friday that the euro-zone debt crisis can be brought under control in the next twelve months.

The minister said he believed that in the next twelve months, the risk of contagion will be brought under check and the euro-zone will be stabilized.

He ruled out a breakup of the euro area.

France plans to raise between €7 billion and €8 billion from its first long-term debt auction for 2012, set for next Thursday, the Treasury announced today. The agency will issue bonds for 10, 12, 24 and 30-years maturity.

In Paris trading, the CAC-40 Index gained 1.20 to 3,129.16 and in Frankfurt the DAX Index edged higher 9.8 or 0.2% to 5,859.72.

For the year, DAX Index fell 15.3% and the CAC 40 Index dropped 17.8%.

Spain Current Account Swings to Surplus

Spain''s current account swung to a surplus of €456.2 million in October compared to a shortfall of €3.6 billion in the prior month, the Bank of Spain said today. In October 2010, the deficit was €2.66 billion.

The surplus in services rose to €3.8 billion in October from €2.81 billion last year.

Separately, Spanish consumer price inflation eased in December to 2.4% from 2.9% in November. The statistics office is scheduled to publish final data on January 13.

Greek Retail Sales Drop

Greece''s retail sales, excluding automotive fuel and at current prices, declined 7.7% on an annual basis in October versus the 4.1% fall recorded in September., data released by the Hellenic Statistics Authority showed.

Retail sales of food products dropped 1.4% from a year ago, while there was a 14.3% annual fall in sales in the non-food sector in October.

Portuguese Retail Sales Slows

Portugal''s retail sales decreased a seasonally adjusted 2.6% on a monthly basis in November, slower than the 3% decrease in October, data released by Statistics Portugal showed.

Retail sales of food products decreased 4.4% from a month ago, while sales of non-food products dropped 0.6% in November.

From a year ago, retail sales declined a seasonally adjusted 9.2% in November, after falling 9.7% in October.

Italian Producer Prices Rise

Italy''s producer prices increased in November compared to last year, according to data released from the statistics office Istat today.

The producer price index for the total industry advanced 4.2% from a year ago in November and rose 0.1% compared to the previous month.

Dutch Producer Price Inflation Eases

Dutch producer price inflation slowed to 7.7% annually in November, following the 8.3% growth in October, data from Statistics Netherlands showed.

On a monthly basis, producer prices rose 0.3% in November compared to a 0.5% fall in October.

Gainers & Losers

Deutsche Telekom AG dipped 0.1% to €8.82 after the German telecommunications company and its Hungarian subsidiary Magyar Telekom plc agreed to pay $95 million to settle allegations that they violated the Foreign Corrupt Practices Act.

Enea AB soared 12.9% to SEK 28.80 after the Swedish software and services firm entered into a binding agreement with Xdin AB to divest its Swedish consulting companies in Stockholm, Lund and Linköping for about SEK 140 million, with no cash and no-interest-bearing liabilities.

ING Groep rose 1.3% to €5.52 after the financial institution completed the divestment of its Latin American pensions, life insurance and investment management operations to Colombia''s Grupo de Inversiones Suramericana with a net gain on transaction of approximately €10 billion.