LONDON (ShareCast) - Another busy news day in Europe but equities were generally subdued. At the close the Euro Stoxx 50 had risen 0.62% to 2,267. In Frankfurt the Dax 30 was down 0.33% at 5,913 while in Paris the CAC 40 was up 0.52% at 3,065.

As ever, all investors' were eyeing the yields on sovereign debt.

Italy’s yield came down during the day but not below the crucial 7% threshold that forced Portugal, Greece and Ireland to seek a bail out. At 17:45GMT Italian 10 year bonds were yielding a worrying 7.004% while Spanish 10 year notes had risen to 6.411%, up 7.5 basis points on the day.

The Spanish move happened as rumours began to circulate that lch.clearnet, one of the world’s biggest clearing houses, may increase margin requirements on Spanish bonds, making them more expensive to hold.

As politicians across the Eurozone seek to find a solution to the ongoing agonies of the single currency Germany’s Angela Merkel suggested that her country might be willing to cede more sovereignty.

In Italy the respected economist Mario Monti was sworn in as a “technocratic” Prime Minister, with some reports suggesting he may also take on the financial affairs brief.

In corporate news French Media group Vivendi was on song in the third quarter, producing profits that topped market expectations. Underlying profit of €685m was comfortably ahead of market projections of €555m, on sales that eased 1.6% to €6.78bn. It’s shares gained 5.56% before the close.

In contrast, telecoms and construction firm Bouygues has been a drag on the CAC index after a negative reaction to its nine-month results. The company posted a 14% drop in net income to €794m versus last year and fell half a percent on the day in reaction.

German computer chip-maker Infineon took a battering after it warned that full-year sales will be down by a "mid-single digit percentage" from last year. It closed at €6.2370, a fall of 4.82% on the day.

MACROECONOMY

The Eurozone's CPI rose at a 3.0% on year pace in October, as expected.

OTHER MARKETS

In other markets Brent Crude fell 1% to $111.1 per barrel on the ICE exchange.

The Euro fell against the dollar on currency markets, dropping nearly 1% to $1.3505.

BS

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