After the better open European indices moved back to PDC levels before moving back to near morning highs. Italy outperformed as banks led on lower NPL’s and the minimal impact from ECB Bad-loan actions. Further, positive earnings in the space on our side of the pond helped as well. The UK FTSE fell with the Pound holding steady today with weakness in Consumer Staples and Energy names. The 10 year GILT fell today, pushing the yield to 1.306%.
Gains were broad with 416 of the 600 names in the Stoxx 600 higher on volume 5% higher. The banking sector for the region rallied 2.51% with Insurers up 1.38% and Financials better by 1.07%.
Post the close the UK Times reported EU officials are looking into the delay of Brexit until next year with France and Germany reported to be willing to extend discussions. PM May’s confidence vote is still scheduled for this afternoon.
Deutsche Bank rallied 8.4% on headlines that ECB regulators are in favor on the bank merging with a European rival rather than local peer Commerzbank +7.4%. German regs are more keen to a merger between the two, hoping for one strong bank to support the country’s exporters.
On word CEO Kapoor will leave at the end of this year Reckitt Benckiser fell 4.2%. Liberum said his departure could lead to the company being split into two companies with the intention of making the separated parts more attractive to outside parties.
Despite Brexit overhang concerns builder Persimmon +5.4% reported better FY revs citing low interest rates/competitive mortgage market along with strong employment levels.
From earlier: Unicredit +5.8%, DSV +5.8%, Panalpina Welttransport +28%, Pearson -6%.
Tomorrow EU Construction and consumer inflation readings will be released.