European stocks were seen trading flat on Monday, clearing some of Friday’s closing gains. German’s DAX closed last week sessions with record highs, the pan-European Euro Stoxx 50 reached a two-year high, while the French CAC index marked a five-year high as investors speculate on whether the Federal Reserve (Fed) would cease on tapering its $85 billion monthly bond-purchasing program, due to the US government shutdown.
The pan-European Euro Stoxx 50 advanced 0.04% at 3,028.50, while the French CAC 40 edged 0.19% lower at 4,280.80. The UK’s FTSE 100 gained 0.12% standing at 6,631.50 as of 8:12am, while Germany’s DAX 30 declined 0.07% lower at 8,859.80 at the same time.
The German software company, SAP AG (SAP), posted a growth in its net profit in the third quarter ended September 30. Net profit advanced by 10% to €724 million, while revenue rose by 4% to €4.06 billion.
While electronics and healthcare makers Philips posted a triple profit in a year, with its net profit rising to €281 million compared to €105 million recorded last year, the office report confirmed. Sales increased by 3% to €5.62 billion.
German producer prices edged up 0.1% higher on a monthly basis in September, compared to the decline of 0.1% seen in August.
European Stocks – Australia
Australia’s benchmark S&P/ASX 200 index closed 0.57% higher at 5,351.77 points, driven by the mining stock gains and reaching it’s highest since 2008.
Fortescue Metals traded 1.7% higher, while BHP Billiton was seen 1% higher. Meanwhile the National Australia Bank and ANZ assisted the benchmark index, each trading 1% higher.
In Japan, the country’s benchmark Nikkei 225 index edged 0.91% higher at 14,693.57 points, while Tokyo’s broader Topix index advanced 0.57% to 1,212.36 points. The export growth in Japan eased to 11.5% in September, while the country’s yen weakened after the trade data was released at 11:50pm GMT, trading 0.33% lower at ¥98.09.
European Stocks – FOMC Speech
On Thursday, Chicago Fed President Charles Evans made a speech hinting a possible delay in tapering the Fed’s asset purchasing program due to the delayed data reporting because of the US government shutdown. Evans also commented on the inflation rate which remains below the Federal Reserve’s target and the unemployment rate remains high.
Minneapolis Fed President Narayana Kocherlakota also made a speech on Thursday, supporting the QE due to the high unemployment rate.
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