Eagle River, WI 10/20/2011 (PennyPayDay) – European stocks are trading off their day's lows on Thursday, with a rise in U.S. stock futures buoying sentiment to some extent after a guideline document presented by German officials suggested that the EFSF would be able to purchase bonds from the secondary market.Stocks fell sharply early in the session, as splits emerged among European leaders on a plan to beef up the bailout fund to tackle the euro zone debt crisis. European leaders are due to hold a summit this weekend to make significant progress on expanding the EU bailout fund and recapitalizing banks.
Also, the U.S. economy continued to expand in September, although the pace of growth remains "modest" or "slight" in a number of regions, the Federal Reserve's Book survey released yesterday said, denting hopes of a recovery in the global economy. September's existing home sales numbers and data on initial jobless claims slated for release later in the day could offer further clues about the world's largest economy.
The Euro Stoxx 50 index of euro zone blue chippers and the Stoxx Europe 50 index, which includes some major U.K. companies, are declining around half a percent each, while around Europe, the German DAX is moving down 0.4 percent, France's CAC 40 is declining 0.7 percent and the U.K.'s FTSE 100 is losing 0.4 percent. Switzerland's SMI is posting a modest 0.1 percent gain.
In stock-specific action, Deutsche Boerse AG is rising 1.1 percent after the Frankfurt Stock Exchange owner said its profit nearly doubled in the third quarter on a one-time gain as well as on a 20 percent growth in revenues.
EADS is down half a percent on a FT report that Germany plans to slash the number of military aircraft it will buy from the company. Hochtief is declining 1.7 percent despite a broker upgrading its rating on the stock.
Schneider Electric is tumbling 7.4 percent in Paris after the French energy management company said its sales for the third quarter increased 4.6 percent on a current structure and exchange rate basis and organic growth was 7.7 percent. The company also confirmed its 2011 organic top line growth target of 6 to 9 percent, while lowering its EBITA margin outlook.
Shares of Actelion plunged around 12 percent in Zurich after the Swiss biopharmaceutical company reported a decline in third-quarter earnings, hurt by lower product sales mainly of its pulmonary arterial hypertension drug Tracleer. Nestle shares edged down 0.3 percent after the Swiss food giant reported sales of 60.89 billion francs for the 9-month period ended September, slightly shy of some estimates.
In economic releases, retail sales figures in the U.K. were a bit stronger than expected in September, but economists sounded less optimistic if the coming months will see a similar upturn as global economic jitters and tight fiscal policy at home continue to weigh on consumer spending.
The Office for National Statistics said Thursday that sales volume, including automotive fuel, rose 0.6 percent month-on-month, compared to economists' forecast for a flat reading. The previous month's result was revised to a 0.4 percent decline.
Crude prices reversed early declines, while copper prices are down nearly 3 percent on the London Metal Exchange on concerns over slowing economic growth.
The Swiss stock market was slightly lower in mid-day trading Thursday, but major pharmaceutical stocks were providing a measure of support.
The general mood of the market was cautious amid fresh concerns that European leaders will not be able to come to agreement on a plan to for an expanded sovereign debt rescue fund in Brussels on Sunday.
The Swiss Market Index (SMI) rose 0.04 percent to 5,597.61. The Swiss Leader Index (SLI) decreased by 0.24 percent to 853.01 and the broader Swiss Performance Index by 0.19 percent to 5,158.34 meters.
Actelion Pharmaceuticals Ltd. posted third-quarter earnings per share of CHF 0.68, lower than CHF 0.87 per share reported a year ago. Shares were down 4 percent.
However, Roche Holdings and Novartis are getting a boost as defensive plays. Shares of both drug makers were up more than 1 percent.
Food giant Nestlé S.A. reported a 7.3 percent rise in organic sales for the first nine months, and said for the full year, it expects to slightly over-perform against its long-term organic sales growth target of 5 to 6 percent, despite input cost pressures.
Roche had positive study results for the drug candidate ocrelizumab in the treatment of multiple sclerosis.
Banks were lower amid anxiety over the EU summit. Credit Suisse was down 1.8 percent, and UBS lost 0.4 percent.
Richemont and Swatch shares were fractionally lower despite new data showing strong watch exports from Switzerland.
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