Greek Parliament Approves Budget, German Wholesale Inflation Rises

Arthi Gupta
12 Nov, 2012
New York City

The European indexes traded sideways and Greek lawmakers approved the 2013 budget. German wholesale price index increased 4.6% on an annual basis in October. Dutch surplus declined in September.

[R]1:30 PM Frankfurt – The European indexes traded sideways and Greek lawmakers approved the 2013 budget. German wholesale price index increased 4.6% on an annual basis in October. Dutch surplus declined in September.[/R]

The European indexes traded sideways and Greek lawmakers approved the 2013 budget.

Euro group finance ministers meet in Brussels today that may lead to finalization of the next tranche of the Greek loans. Greece must raise funds to avoid defaulting on €5 billion debt repayment on November 16.

Greek Lawmakers Approves Budget

The Greek parliament approved the 2013 budget with new austerity measures and spending cuts by a 167-to-128 vote.

People took to the streets peacefully in Athens on Sunday to protest against the fresh austerity measures in the budget that include raising the retirement age limit from 65 to 67, a salary cut for public sector employees and slashing pensions by up to 15% over the next two years.

Earlier in the week, the Greek government won a tight vote of 153-128 in favor of the €13.5 billion austerity measures.

These approvals are a precondition for Greece for securing the next bailout tranche worth €31.5 billion from the international lenders or troika.

In Paris trading, the CAC-40 Index declined 1.69 or 0.1% to 3,421.80 and in Frankfurt the DAX Index edged higher 19.33 or 0.3% to 7,182.65.

The yields on Spain’s benchmark increased five basis points to 5.875%. Italian 10-year yields were at 5%.

German WPI Climbs

Germany''s wholesale price index increased 4.6% on an annual basis in October compared to the 4.2% gain in September, data released by the Federal Statistics Office showed.

On a monthly basis, wholesale prices decreased a seasonally adjusted 0.6% in October from the 1.3% increase in September.

Dutch Surplus Drops

The Netherlands'' trade surplus declined in September, data released by the Central Bureau of Statistics showed.

Exports decreased 1% annually to €35.1 billion and imports increased 1% annually to €31.5 billion in September resulting in a trade surplus of €3.6 billion. This is €0.4 billion less than in September 2011.

Irish Construction Falls

Ireland''s construction activity declined in October, survey results from Markit Economics showed today.

The Ulster Bank Construction Purchasing Managers'' Index rose to a seasonally adjusted 42.6 in October from 41.9 registered in September.

New business declined for the tenth successive month in October.