Investing.com - European shares traded mixed Friday, as conflicting economic signals made investors wary of holding stocks over the weekend.
Near the close of European trade, the EURO STOXX 50 eased higher 0.06%, France's CAC 40 advanced 0.24%, while Germany’s DAX gave back 0.14%. Meanwhile, in the U.K. the FTSE 100 fell 0.19%.
Starting the negative sentiment, the International Swaps and Derivatives Association is considering triggering credit default swap payouts due to collective action clauses.
Despite ruling the European Central Bank’s exchange for Greek bonds for new securities, exempt from private investor losses, did not trigger the CDS payouts on Thursday.
Policy makers including former ECB President Jean Claude Trichet have spoken out against paying the swap contracts due to worries that traders would be encouraged to bet against failing nations thus worsen the euro zone crisis.
In economic news, euro zone producer price inflation climbed more than expected to a seasonally adjusted 0.7% last month from -0.2% the preceding month.
Analysts had forecast euro zone PPI to only rise to 0.5% last month.
Meanwhile, at the European Leaders summit in Brussels, euro zone heads declared a turning point in the debt crisis.
The leaders agreed that given the Greek aid package being started and a potential euro zone recession, its time to focus on a pro growth agenda despite the deficit control treaty signed today.
EU President Herman Van Rompuy stated, “Targets on deficits are intermediate targets, no aim in itself. The restoration of confidence in the future of the euro zone will lead to economic growth. That is our ultimate objective.”
Even German Chancellor, Angela Merkel, changed her stance on slowing down payment for the EUR500 billion permanent rescue fund to speeding up the payments at the summit.
Known as the European Financial Stability Facility, the permanent fund will go into operation in July.
U.S. Stocks are following Europe higher midsession with the Dow gaining 0.31%, the S&P 500 advancing 0.40% and the Nasdaq marching higher by 0.54%
Banks gained on the ECB’s liquidity injection with Barclays adding 2.3%, Commerzbank gaining 1.9% and BNP Paribas rising 1.8%
In bearish news, the world’s largest pest control company, Rentokil Initial dropped 5.4% after missing profit estimates.
Kazakhmys Plc, Kazakhstan’s largest copper producer, gave back 5.5% after being cut to hold from buy at Societe Generale.
In U.S. midsession trade, stocks are mostly flat with the Dow off 0.06%, the S&P 500 down 0.05% and the Nasdaq trading higher by 0.09.
Near the close of European trade, the EURO STOXX 50 eased higher 0.06%, France's CAC 40 advanced 0.24%, while Germany’s DAX gave back 0.14%. Meanwhile, in the U.K. the FTSE 100 fell 0.19%.
Starting the negative sentiment, the International Swaps and Derivatives Association is considering triggering credit default swap payouts due to collective action clauses.
Despite ruling the European Central Bank’s exchange for Greek bonds for new securities, exempt from private investor losses, did not trigger the CDS payouts on Thursday.
Policy makers including former ECB President Jean Claude Trichet have spoken out against paying the swap contracts due to worries that traders would be encouraged to bet against failing nations thus worsen the euro zone crisis.
In economic news, euro zone producer price inflation climbed more than expected to a seasonally adjusted 0.7% last month from -0.2% the preceding month.
Analysts had forecast euro zone PPI to only rise to 0.5% last month.
Meanwhile, at the European Leaders summit in Brussels, euro zone heads declared a turning point in the debt crisis.
The leaders agreed that given the Greek aid package being started and a potential euro zone recession, its time to focus on a pro growth agenda despite the deficit control treaty signed today.
EU President Herman Van Rompuy stated, “Targets on deficits are intermediate targets, no aim in itself. The restoration of confidence in the future of the euro zone will lead to economic growth. That is our ultimate objective.”
Even German Chancellor, Angela Merkel, changed her stance on slowing down payment for the EUR500 billion permanent rescue fund to speeding up the payments at the summit.
Known as the European Financial Stability Facility, the permanent fund will go into operation in July.
U.S. Stocks are following Europe higher midsession with the Dow gaining 0.31%, the S&P 500 advancing 0.40% and the Nasdaq marching higher by 0.54%
Banks gained on the ECB’s liquidity injection with Barclays adding 2.3%, Commerzbank gaining 1.9% and BNP Paribas rising 1.8%
In bearish news, the world’s largest pest control company, Rentokil Initial dropped 5.4% after missing profit estimates.
Kazakhmys Plc, Kazakhstan’s largest copper producer, gave back 5.5% after being cut to hold from buy at Societe Generale.
In U.S. midsession trade, stocks are mostly flat with the Dow off 0.06%, the S&P 500 down 0.05% and the Nasdaq trading higher by 0.09.