European Markets Advanced on Chinese Economic Data

Arthi Gupta
15 Oct, 2012
New York City

The European indexes rose on better than estimated Chinese economic data. Greek premier Samaras optimistic on securing the next tranche of bailout fund soon. ITT agreed to acquire Bornemann Pumps for

[R]3:00 PM Frankfurt – The European indexes rose on better than estimated Chinese economic data. Greek premier Samaras optimistic on securing the next tranche of bailout fund soon. ITT agreed to acquire Bornemann Pumps for €206 million.[/R]

European indexes gained after Chinese economic data were better than anticipated with inflation easing and exports rising.

Inflation in China slowed to 1.9% in September from 2% in August, the latest data from the National Bureau of Statistics showed.

In another report, Chinese exports rose 9.9% annually to $186.35 billion and imports rose 2.4% to $158.7 billion widening the country''s trade surplus to $27.67 billion in September from $26.7 billion in August, data released by the customs office showed.

Greek Prime Minister Antonis Samaras exuded confidence that his country would reach an agreement with the troika on austerity measures to secure the next tranche of the bailout money worth €31.5 billion.

Samaras said in an interview to the Greek newspaper Kathimerini on Sunday that there are differences in opinion between the lenders and the Greek government on reducing the budget deficit. But he was optimistic that this issue would be resolved prior to the EU Summit starting on October 18 in Brussels.

Separately, German Finance Minister Wolfgang Schaeuble told Thai newspaper The Nation that it is important to ensure price stability in the euro area.

In Paris trading, the CAC-40 Index rose 47.25 or 1.4% to 3,436.52 and in Frankfurt the DAX Index edged higher 61.97 or 0.9% to 7,294.47.

The yield on Spain’s benchmark 10-year bond traded at 5.62% and for Italian bond fell three basis points to 4.95%.

ITT to Acquire Bornemann Pumps

ITT Corporation agreed to acquire Joh. Heinr. Bornemann GmbH, the Germany-based engineered pumps and systems provider for the oil and gas industry for €206 million. The transaction is expected to close in the fourth quarter.