LONDON (ShareCast) - European stocks had moved deeper into the red just after midday following poor quarterly results out of US computing giant IBM.
That weighed on what was already dour market sentiment following weak showings out of two of the Continent's own technology stalwarts,SAP and Royal Philips.

The German software giant slashed its full-year earnings forecasts, sending its shares lower by nearly 4%. Meanwhile, Royal Philips reported weaker than expected third quarter profits and sales.

Acting as a backdrop, market commentary this morning seems to be highlighting France's upcoming budget battles, as well as next weekend's ECB stress test results. Traders are also highly expectant ahead of tonight's results from US technology outfits Apple and Texas Instruments.

As of 12:30 the German Dax Xetra was off by 1.64% and the Paris benchmark, the Cac-40, down by 1.39%. Stocks on the periphery were faring better, with Madrid's benchmark Ibex 35 down by 0.99% and the FTSE Mibtel 0.58% lower.

Adidas on the other hand was moving up by 4% after The Wall Street Journal Europe reported that a group of investors may make a bid for Adidas valued at about €1.7bn.

Shares of French advertising group Havas were also gaining ground on the back of a deal that would see billionaire Vincent Bollore take a majority stake in the firm.

From a sector standpoint the largest losses are now to be seen in the following industrial groups within the DJ Stoxx 600: Oil&Gas (-2.65%), Technology (-2.41%) and Automobiles&parts (-1.53%).

Better than expected economic data

The Eurozone's current account surplus rose to €18.9bn in August after a reading of €18.7bn in the prior month.

Industrial orders in Italy increased by 1.5% month-on-month in August (consensus: 0.2%).

German producer prices fell at 1% year-on-year clip in September, as expected.

Oil futures move a tad lower

Front month Brent crude futures are lower by 0.36% to $85.85 per barrel out on the ICE.

The euro/dollar edged up to 1.2784.

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