European Stocks Mixed as Markets Lose Momentum
Frankfurt (Oct 25) Stocks lost momentum Wednesday after recent highs with European markets mostly down despite a slew of better-than-expected data.
U.S. futures were threading water with Dow Jones mini futures down 0.06% and S&P 500 mini futures down 0.17%.
London's FTSE 100 was down 0.27%, or 19.73 points, to 7,507.10. The pound however was up 0.5% against the greenback to $1.32017 after stronger than expected third quarter GDP numbers raised the likelihood of a possible rate rise by the Bank of England in November. GDP in the three months to the end of September grew by 0.4%, data released Wednesday by the Office for National Statistics show, more than the 0.3% recorded in the second quarter and ahead of economists' expectations of 0.3%.
Germany's Dax was down 0.08%, or 10.48 points, to 13,002.35 despite a closely-watched index released Wednesday showing German businesses were more confident that ever. The reading from Institute for Economic Research on business climate in the country came in a new high of 116.7 up from 115.3 in September. The Ifo's business expectations index beat expectations to come in at 124.8 and the current conditions survey came in at 124.8 up from 123.7 in September.
France's Cac 40 was up 0.11%, or 5.93 points, up at 5,401.05. Spain's Ibex was gaining, up 0.34%, or 35 points, 10,241.30 ahead of what could be a major constitutional crisis later in week when Madrid tries to take power from Catalonia. Prime Minister Mariano Rajoy said Wednesday that elections in Catalonia would be a "good move." The euro was flat against the dollar to $1.18.
Japan's markets broke a 16-day winning streak, with the Nikkei down 0.5% and the Topix down 0.3%. Markets in China were up, with Shanghai Composite Index gaining 0.2% and the Hang Seng up 0.4%.
The Chinese Communist Party on Wednesday failed to designate a clear potential successor for Xi Jinping, clearing the way for the president to stay in power for decades longer a day after his name was written into the constitution. . Five new members were made to the seven-member Politburo Standing Committee, the party's most powerful body.
TheStreet
