European stocks rebounded from a five-week low, as investors speculated on the possibility of further European Central Bank stimulus, after data showed euro-area inflation slowed this month. U.S. stock futures gained, while Asian shares fell.
Royal Bank of Scotland Group Plc climbed 3.6 percent after saying total impairment charges for this year will be lower than previously forecast. Bank of Ireland Plc added 2.9 percent as RBS said rising Irish property prices helped reduce impairment charges in the country. Next Plc slipped 3.8 percent after saying it may cut its annual-profit forecast if the warm weather in the U.K. continues throughout October. The Stoxx 600 Europe Index climbed 0.6 percent to 342.87 at 10:17 a.m. in London, extending earlier gains. The equity benchmark fell 0.4 percent yesterday, as banks slid and data showed economic confidence in the region dropped to the lowest since November.
“The ECB has done a lot already to stimulate economic activity in Europe,” Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit, said by phone from Hellerup, Denmark. “This week we’ll look for more details regarding the asset-backed securities program and covered bond program. We’re still waiting for the big bazooka, which would be the ECB really expanding their balance sheet.”
Standard & Poor’s 500 Index futures added 0.4 percent today. The MSCI Asia Pacific Index slid 0.7 percent to a four-month low as pro-democracy protests continue in Hong Kong.
ECB Policy
The European Central Bank, which meets to discuss monetary policy this week, has cut interest rates twice since June, announced targeted long-term loans for banks, and said it will start buying assets to avert a downward spiral in prices.
Consumer prices in the euro region rose an annual 0.3 percent this month, the European Union’s statistics office in Luxembourg said today. That’s in line with the median estimate in a Bloomberg News survey and follows a reading of 0.4 percent in August. Unemployment (UMRTEMU) held at 11.5 percent in August, Eurostat said in a separate report.
Amid signs of weaker growth in Europe, investors have also been examining U.S. data for clues as to the timing of an increase in interest rates. A Conference Board report at 10 a.m. in New York may show American consumer confidence climbed this month to its highest level in almost seven years, economists surveyed by Bloomberg News predicted.
RBS Advances
RBS gained 3.6 percent to 374.4 pence. The lender will “significantly outperform” its previous guidance of about 1 billion pounds ($1.6 billion) worth of total impairments for 2014, according to a statement. The bank said it had lower levels of non-performing loans and didn’t see large one-off charges in the third quarter.
RBS said rising Irish residential property prices, as well as active debt management, led to lower liabilities at its personal and business banking unit in Ulster. Bank of Ireland added 2.9 percent to 31.6 euro cents.
Wolseley Plc advanced 1.2 percent to 3,297 pence after saying full-year earnings jumped 9.9 percent to 196.2 pence a share. The distributor of building materials and bathroom supplies predicted sales growth of 5 percent for the next six months, and said it will buy back as much as 250 million pounds of its own shares within the next 12 months.
Next dropped 3.8 percent to 6,605 pence after the clothing retailer said another month of warm weather will reduce full-year profit. The company on Sept. 11 reiterated a forecast for profit of as much as 815 million pounds.
Marks & Spencer Group Plc, the largest British clothing retailer, slipped 2.2 percent to 406.1 pence, its lowest price since May 2013.
A gauge of carmakers slid 0.8 percent, for the largest decline among the 19 industry groups on the Stoxx 600, as America’s Ford Motor Co. said it will miss a profit forecast for 2014. Renault SA retreated 2.7 percent to 57.35 euros, while PSA Peugeot Citroen lost 2.2 percent to 10.04 euros. Volkswagen AG dropped 0.9 percent to 163.50 euros.
source: Bloomberg
Royal Bank of Scotland Group Plc climbed 3.6 percent after saying total impairment charges for this year will be lower than previously forecast. Bank of Ireland Plc added 2.9 percent as RBS said rising Irish property prices helped reduce impairment charges in the country. Next Plc slipped 3.8 percent after saying it may cut its annual-profit forecast if the warm weather in the U.K. continues throughout October. The Stoxx 600 Europe Index climbed 0.6 percent to 342.87 at 10:17 a.m. in London, extending earlier gains. The equity benchmark fell 0.4 percent yesterday, as banks slid and data showed economic confidence in the region dropped to the lowest since November.
“The ECB has done a lot already to stimulate economic activity in Europe,” Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit, said by phone from Hellerup, Denmark. “This week we’ll look for more details regarding the asset-backed securities program and covered bond program. We’re still waiting for the big bazooka, which would be the ECB really expanding their balance sheet.”
Standard & Poor’s 500 Index futures added 0.4 percent today. The MSCI Asia Pacific Index slid 0.7 percent to a four-month low as pro-democracy protests continue in Hong Kong.
ECB Policy
The European Central Bank, which meets to discuss monetary policy this week, has cut interest rates twice since June, announced targeted long-term loans for banks, and said it will start buying assets to avert a downward spiral in prices.
Consumer prices in the euro region rose an annual 0.3 percent this month, the European Union’s statistics office in Luxembourg said today. That’s in line with the median estimate in a Bloomberg News survey and follows a reading of 0.4 percent in August. Unemployment (UMRTEMU) held at 11.5 percent in August, Eurostat said in a separate report.
Amid signs of weaker growth in Europe, investors have also been examining U.S. data for clues as to the timing of an increase in interest rates. A Conference Board report at 10 a.m. in New York may show American consumer confidence climbed this month to its highest level in almost seven years, economists surveyed by Bloomberg News predicted.
RBS Advances
RBS gained 3.6 percent to 374.4 pence. The lender will “significantly outperform” its previous guidance of about 1 billion pounds ($1.6 billion) worth of total impairments for 2014, according to a statement. The bank said it had lower levels of non-performing loans and didn’t see large one-off charges in the third quarter.
RBS said rising Irish residential property prices, as well as active debt management, led to lower liabilities at its personal and business banking unit in Ulster. Bank of Ireland added 2.9 percent to 31.6 euro cents.
Wolseley Plc advanced 1.2 percent to 3,297 pence after saying full-year earnings jumped 9.9 percent to 196.2 pence a share. The distributor of building materials and bathroom supplies predicted sales growth of 5 percent for the next six months, and said it will buy back as much as 250 million pounds of its own shares within the next 12 months.
Next dropped 3.8 percent to 6,605 pence after the clothing retailer said another month of warm weather will reduce full-year profit. The company on Sept. 11 reiterated a forecast for profit of as much as 815 million pounds.
Marks & Spencer Group Plc, the largest British clothing retailer, slipped 2.2 percent to 406.1 pence, its lowest price since May 2013.
A gauge of carmakers slid 0.8 percent, for the largest decline among the 19 industry groups on the Stoxx 600, as America’s Ford Motor Co. said it will miss a profit forecast for 2014. Renault SA retreated 2.7 percent to 57.35 euros, while PSA Peugeot Citroen lost 2.2 percent to 10.04 euros. Volkswagen AG dropped 0.9 percent to 163.50 euros.
source: Bloomberg