HSBC Settles Money Laundering Charges for $1.9 B, European Markets Higher

Arthi Gupta
11 Dec, 2012
New York City

The European indexes rose after German economic confidence rebounded in December. French payroll employment fell in the third quarter. UK home prices declined in November.

[R]1:00 PM Frankfurt – The European indexes rose after German economic confidence rebounded in December. French payroll employment fell in the third quarter. UK home prices declined in November.[/R]

The European indexes edged higher after German economic confidence rebounded in December. HSBC agreed to a deferred prosecution to settle money laundering charges stemming from its operations in Mexico.

HSBC Holdings Plc agreed to pay $1.92 billion to the Department of Justice to settle charges stemming from its failure in preventing money laundering by drug cartels, tax dodgers and terrorists.

German wholesale price inflation eased in November. The leading economic index for the UK decreased in October.

Traders look to the two-day European Union summit scheduled on December 13 and 14 in Brussels. In the last summit, the European leaders remained divided in setting up common banking supervisory authority across the euro zone.

In Paris trading, the CAC-40 Index rose 21.40 or 0.6% to 3,633.50 and in Frankfurt the DAX Index edged higher 34.92 or 0.5% to 7,565.49.

The yields on Spain’s benchmark fell five basis points to 5.51%. Italian 10-year yields fell six basis points to 4.76%.

German WPI Slows, Economic Confidence Rebounds

German wholesale price inflation eased 3.2% annually in November from the 4.6% increase in October, data from the Federal Statistics Office showed.

From a month ago, wholesale prices fell 0.7% in November compared to the 0.6% decline in October.

Separately, Germany''s economic confidence climbed 22.6 points to 6.9 in December; survey results from the Centre for European Economic Research showed today. The indicator turned positive for the first time since May 2012.

The assessment of the current economic situation remained almost unchanged in December. The respective indicator increased 0.3 points to 5.7.

French Payroll Employment Falls

France’s payroll employment in principal market sectors decreased 0.3% or 41,700 sequentially in the third quarter following a 0.1% or 16,100 decline in the second quarter, the statistics office Insee said.

Temporary employment dropped 5.7%, after a 3.2% decline in the second quarter.

UK Leading Index Declines

The leading economic index for the UK decreased to 102 in October from 102.4 in September, data from a survey by the Conference Board showed. Four of the seven components made negative contributions to the index.

The coincident economic index remained unchanged at 103.6 in October, after decreasing 0.1% in September.

Separately, the UK home prices declined in November, a survey by the Royal Institution of Chartered Surveyors'' showedy. The RICS house price balance fell to -9 in November from -7 in October.