(MENAFN– ecpulse)
European shares were mixed to lower early Monday, as investors weighed in uncertainty over the future of the Federal Reserve’s bond-buying program.
Equities had rallied on Friday on expectations a deal to end the fiscal crisis could be reached over the weekend. Senate Majority Leader Harry Reid and Republican leader Mitch McConnell held talks that Reid later called "substantive", but investors were not convinced about an imminent deal.
Markets were jittery as concerns over the impact of the 16-day shutdown on the U.S. economic recovery fuelled expectations that the Fed would delay plans for rolling back its asset purchase program until at least the beginning of next year.
- Stoxx 600 lost gained 0.14 percent or 0.46 points to 318.93
- Stoxx 50 dropped 0.14% to 3029.04 . As of 03:55 a.m. EST.
European markets rose notably on Friday, with a batch of stronger than expected U.S. earnings reports and easing concerns over the strength of economic recovery in China underpinning sentiment. The German DAX rose 0.6 percent, France`s CAC 40 advanced 1.1 percent and the U.K.`s FTSE 100 added 0.7 percent.
U.S. stocks also rose on Friday as investors cheered encouraging GDP data out of China and earnings from big-name companies like Google Inc., General Electric and Morgan Stanley. The Dow posted a modest 0.2 percent gain, the tech-heavy Nasdaq rallied 1.4 percent to a fresh thirteen-year high and the S&P 500 advanced 0.7 percent to a record high.
European Commission President Jose Manuel Barroso and Canadian Prime Minister Stephen Harper have reached a political agreement on the key elements of a Comprehensive Economic and Trade Agreement that will help foster growth and employment on both sides of the Atlantic.
The overall benefits of the agreement are expected to raise the level of the EU`s annual GDP by approximately 12 billion Euros a year.
Data Downpour
Investors were eyeing U.S. data releases later in the week after the shutdown delayed the release of some key economic reports. The September nonfarm payrolls report, which had been originally scheduled for release on October 4, was due on Tuesday.
Besides the jobs reports, investors will digest a slew of U.S. data this week to get an idea of when the Federal Reserve will begin tapering its bond-buying program. As of now, a majority of market players and economists expect the Fed to delay its tapering plans until such time the American lawmakers find a more permanent solution to Washington`s fiscal woes.
-The British FTSE 100 gained 0.05% or 3.51 points to 6626.09
-The French CAC 40 lost 0.11% or 4.61 to 4281.42
-Frankfurt’s DAX 30 lost 0.09% or 7.84 points to 8857.26
In corporate news, Royal Philips NV rose 5.1 percent after posting third-quarter profit that surpassed analysts’ estimates.
Akzo Nobel NV gained 4.9 percent after the Dutch maker of Dulux paint reported earnings that exceeded projections.
Actelion Ltd. rallied 4.3 percent as its lung drug Opsumit won U.S. approval. SAP AG added 4.3 percent after reporting results.
German software Company SAP surged 4.93% after saying third-quarter operating profit rose to EUR1.3 billion as revenue from the Hana database product climbed 79%.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.