By RTT News, October 21, 2013, 06:55:00 AM EDT
(RTTNews.com) - European stocks are edging lower on Monday despite speculation the U.S. Federal Reserve will delay its stimulus tapering until March next year. Traders adopt a cautious stance ahead of the highly-anticipated U.S. nonfarm-payrolls report due on Tuesday. The September jobs report along with a batch of U.S. data due out this week may provide further clues about how long the U.S. Federal Reserve will maintain its easy monetary policy.
The Asian markets ended mostly higher, with Chinese shares pacing the gainers, after the Chinese Cabinet urged the local governments and state departments to implement the planned economic reforms and restructuring measures to help the economy recover from the recent lull. Trading in the U.S. index futures indicate a higher open ahead of existing home sales data and earnings results from companies such as McDonald's and Halliburton.
The Euro Stoxx 50 index of eurozone bluechip stocks is moving down 0.3 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, is down 0.1 percent. Around Europe, the German DAX is losing half a percent, France's CAC 40 is declining 0.3 percent and the U.K.'s FTSE 100 is down 0.6 percent.
Deutsche Bank is losing 1.9 percent in Frankfurt after media reports suggested that the lender has broadened its investigation into possible manipulation of the Libor benchmark interest rates.
SGL Carbon SE is climbing 3 percent after the firm said it would close its Canadian graphite electrode facility located in Lachute, Quebec by the first quarter of 2014.
SAP AG is rallying 5.8 percent. The business software maker reiterated its outlook for full year 2013 after reporting a 23 percent increase in its third-quarter profit.
Akzo Nobel NV shares are climbing over 9 percent in Amsterdam. The Dutch paint maker reported a profit in its third quarter, compared to a loss last year, in the absence of a year-ago hefty impairment charge. Revenues, however, declined due to negative currency effects and challenging market conditions.
EDF shares are trading flat in Paris. The energy company announced a comprehensive set of agreements with the UK government to build and operate a pair of nuclear reactors on the west coast of England.
On the macroeconomic front, U.K.'s household finances remained under pressure in October, but job insecurities were relatively modest, data from a survey by Markit Economics showed. The seasonally adjusted household finance index, which measures households' overall perceptions of financial well-being, stood at 41 in October.
Footfall in British retail stores decreased further in September, with all regions recording fall in activity, survey data released by the British Retail Consortium revealed. Footfall in all stores dropped 2.4 percent from a year earlier following August's 0.9 percent fall.
The Bank of England will consider interest rate hike only when the recovery is "on a secure footing", policymaker Ben Broadbent told Sky News. The bank wants to ensure that the recovery does not get choked off by a premature rise in rates, Broadbent said.
For comments and feedback: contact firstname.lastname@example.org