Italy Raises

Arthi Gupta
28 Mar, 2012
New York City

European indexes fell after Italy auctioned

[R]2:45 PM Frankfurt – European indexes fell after Italy auctioned €8.5 billion of 6-month bills at lower yields. Euro area money supply growth rose in February. The UK economy contracted in the fourth quarter.[/R]

European indexes declined and UK revised fourth quarter GDP shrink to 0.3% and German inflation in March eased.

Italy auctioned €8.5 billion of 6-month bills at lower yields. The yield for dropped to its lowest since September 2010.

Moody''s Investors Service affirmed Germany''s Aaa government bond rating and stable outlook.

The agency said that the country''s economic, financial and political characteristics indicated very low event risk despite ongoing economic and financial uncertainties in the euro area.

In Paris trading, the CAC-40 Index declined 1.09 or 0.03% to 3,468.71 and in Frankfurt the DAX Index edged lower 18.20 or 0.2% to 7.060.68.

Italian 10-year bonds yield fell three basis points to 5.087% and yield on similar Spanish government bonds declined four basis points to 5.31%.

Italian Bond Auction

Italy auctioned €8.5 billion of 6-month bills at lower yields.

The Italian Treasury sold €8.5 billion of 182-day bills at an average yield of 1.119% compared to 1.202% at the last auction on February 27. The bid-to-cover ratio was 1.51 compared with 1.36 last month.

Euro Area M3 Growth Rises

Euro-zone money supply growth advanced in February, data from the European Central Bank showed.

The broad monetary aggregate M3 increased 2.8% from a year ago in February compared to the 2.5% gain in January.

French GDP Expands

The French economy expanded as estimated initially in the fourth quarter, the statistics office Insee said today.

The gross domestic product rose 0.2% on a quarterly basis in the fourth quarter, following a 0.3% increase in the third quarter.

UK Economy Shrinks

The UK economy contracted more than initially estimated during the fourth quarter, revised data released by the Office for National Statistics showed today.

The gross domestic product declined 0.3% sequentially in the fourth quarter compared to the previously estimated 0.2% fall. The third quarter GDP growth was revised up to 0.6% from 0.5% estimated previously.

German Inflation Eases

Germany''s harmonized index of consumer prices eased to 2.3% on an annual basis in March from the 2.5% growth in February, preliminary data released by the Federal Statistics Office showed.

Gainers & Losers

ArcelorMittal SA dipped 0.2% to €14.65 after the steel company completed the sale of partial stake in Turkish steelmaker as the company focuses in lowering debt. After the sale stake in Erdemir declined to 18.7% from 12.5%.

Arcelor sold 134.3 million shares and warrants in Ereğli Demir ve Çelik Fabrikaları T.A.Ş. for 478.2 million Turkish lira or $268 million.

ICAP plc fell 3% to 396.90 pence after the interdealer broker reaffirmed its previous earnings guidance.

LCH.Clearnet Group dropped 0.4% to 1,016 pence after the counterparty clearing house in Europe confirmed that it has held constructive preliminary discussions with NYSE Euronext regarding its current intentions with respect to the clearing arrangements of its cash equities and derivatives businesses.

Swiss Re AG declined 0.1% to Sfr58.70 after the reinsurer reported natural catastrophe insured losses of around $110 billion, while losses from man-made disasters were around $6 billion.

Thomas Cook Group plc rose 0.2% to 23.30 pence after the tour operator experienced improvement in UK booking trends in the last few weeks.

Total SA edged lower 1.4% to €38.04 after the France based energy explorer stated that the gas at the Elgin wellhead platform continues to be live.