LONDON (ShareCast) - UK FTSE 100 -0.64%
France CAC 40 -0.91%
Germany DAX 30 -0.97%
Italy FTSE MIB -0.97%
Spain IBEX 35 -0.90%
Stoxx Europe 600 -0.62%

Early rises on European equity markets were reversed after optimism over the European Central Bank’s new three-year loan facility evaporated. A total of 523 banks applied for €489bn in loans from the European Central Bank (ECB); observers had been expecting the figure to come in around €300bn.

The huge take up indicated just how desperate for liquidity some European banks are.

BONDS

Germany announced today it would reduce its bond issuance programme next year from €270bn to €250bn.

Italian and Spanish bond yields rose despite the ECB move. At the close the Italian 10-year bond yield had climbed 17.5 basis points (bps) to 6.788%, Spanish equivalents were up 20.6 bps at 5.275%. The French 10-year bond yield was up 2.2 bps at 3.125%.

SECTORS

The “Automobiles and Parts” sector was the biggest riser on the Stoxx Europe 600, up 0.62%. Technology stocks were the biggest fallers, down 2.73%.

COMPANIES

German software maker SAP fell 6.1% in Frankfurt after its American rival Oracle reported slow earnings. The biggest riser was Daimler (+3.1%)

In Paris, oil firm Total led the risers (+1.1), while software company Cap Gemini (also taking its cue from Oracle) was the biggest faller, down -4.9%.

OTHER MARKETS

At 5:01pm in London, Brent Crude for January delivery was up 0.64% at $107.41

Gold futures were down 0.24% at $1,613.7 per ounce.

At 5:12pm in Frankfurt one euro was worth $1.3050, down 0.25% on the fix.

BS

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