Upbeat earnings reports from the financial sector send European stock indices skyward.
The major European stock indices made huge advances on Tuesday, following robust earnings reports from the financial sector (NYSEARCA:VGK). Deutsche Bank reported that its third-quarter net profits rose by a whopping 3.0 percent.
Spain’s National Statistics Institute reported that the nation’s third-quarter GDP declined 0.3 percent from the second quarter. Although the decline was slightly less than the Bank of Spain’s 0.4 percent estimate, on a year-over-year basis, Spain’s GDP fell 1.6 percent from the third quarter of 2011. It was the fifth consecutive quarterly decline for the nation’s economy. The Spanish government anticipates that the total economic contraction for calendar year 2012 will reach 1.5 percent (NYSEARCA:EWP).
Italy held a successful bond auction on Tuesday, meeting its €7 billion target (NYSEARCA:EWI).
Spain’s ten-year bond yield rose slightly to 5.65 percent on Tuesday from Monday’s closing level of 5.63 percent (NYSEARCA:EWP).
A number of news services discussed a report from Germany’s “Federal Labor Agency in Nuremberg” which indicated that the number of unemployed Germans increased in October by 20,000 from September to 2.94 million, for an unemployment rate of 6.9 percent (NYSEARCA:EWG). Nevertheless, an October 30 press release from Germany’s Federal Employment Agency in Nuremberg reported that the October unemployment rate remained unchanged at 6.5 percent, while asserting that the number of unemployed decreased by 35,000. Curiously, the press release does suggest a month-over-month increase of 20,000 (despite the ambiguities created by Google Translate). American bureaucrats would do well to master this level of doublespeak:
From September to October, the unemployment has fallen by 35,000 to 2.753 million. A decline in unemployment in October is quite common, it fell this year but somewhat weaker than in recent years. Seasonally adjusted unemployment has risen so MoM to 20,000. Compared to last year 16,000 people were registered as unemployed for more. For the first time since February 2010, the previous year’s level is exceeded again.
As of 11:14 EDT, the Euro STOXX 50 Index jumped 1.26 percent to 2,510 (NYSEARCA:VGK). The FTSE 100 Index advanced 0.90 percent to 5,847 (NYSEARCA:EWU). The German DAX Index rose 0.97 percent to 7,272 (NYSEARCA:EWG). France’s CAC 40 Index soared 1.32 percent to 3,453 (NYSEARCA:EWQ). Spain’s IBEX 35 Index surged 1.02 percent to 7,807 (NYSEARCA:EWP). Italy’s FTSE MIB Index climbed 0.84 percent to 15,478 (NYSEARCA:EWI).
As of 11:25 EDT, the euro advanced 0.58 percent against the dollar, trading at $1.2980 (NYSEARCA:FXE).
On London’s ICE Futures Europe Exchange, November futures for Brent crude oil advanced by 32 cents to $109.12/bbl. (NYSEARCA:USO).