European Stocks Advance Despite Downbeat PMI Data

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October Eurozone Flash PMI Composite Index from Markit Economics drops to a 40-month low.

The major European stock indices advanced moderately on Wednesday after Markit Economics released a number of preliminary “Flash” PMI reports for October – including its Eurozone PMI (NYSEARCA:VGK).  The Flash Eurozone earth image European Stocks Advance Despite Downbeat PMI DataPMI Composite Output Index dropped to a 40-month low of 45.8 from 46.1 in September.  On the other hand, the Flash Eurozone Services PMI Activity Index reached a two-month high of 46.2 from 46.1 in September.

Markit’s Flash Germany Composite Output Index dropped to 48.1 from September’s 49.2 during September.  October was the sixth consecutive month that this index has posted below the neutral 50.0 value.  Markit’s report noted that this “suggests an ongoing lack of momentum across the German private sector economy” (NYSEARCA:EWG).  A report from Germany’s Ifo Institute revealed that its Germany Business Climate Index declined to 100.0 in October from 101.4 in September.

Greek Finance Minister Yannis Stournaras told his nation’s parliament that Greece obtained a two-year extension to reach its austerity targets from its “troika” of lenders:  the European Commission, European Central Bank and the International Monetary Fund.  The proposal will face a vote in the nation’s parliament next week in the form of two separate bills on austerity cuts (NYSEARCA:GREK).

Spain’s ten-year bond yield jumped as high as 5.68 percent on Wednesday from Tuesday’s closing level of 5.60 percent.  Spain’s two-year bond yield climbed as high as 3.07 percent on Wednesday from Tuesday’s closing level of 3.02 percent (NYSEARCA:EWP).

Italy’s ten-year bond yield climbed as high as 4.96 percent on Wednesday from Tuesday’s closing level of 4.91 percent (NYSEARCA:EWI).

As of 11:15 EDT, the Euro STOXX 50 Index advanced 0.43 percent to 2,488 (NYSEARCA:VGK).  The FTSE 100 Index crept upward by 0.13 percent to 5,805 (NYSEARCA:EWU).  The German DAX Index advanced 0.23 percent to 7,190 (NYSEARCA:EWG).  France’s CAC 40 Index rose 0.51 percent to 3,424 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index climbed 0.53 percent to 7,788 (NYSEARCA:EWP).  Italy’s FTSE MIB Index rose 0.45 percent to 15,649 (NYSEARCA:EWI).

As of 11:24 EDT, the euro declined 0.20 percent against the dollar, trading at $1.2960 (NYSEARCA:FXE).

On London’s ICE Futures Europe Exchange, November futures for Brent crude oil declined by 28 cents (0.26%) to $107.97/bbl. (NYSEARCA:USO).

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