CFD Markets News and Forecasts — 17-10-2011

European stocks fell as a German government spokesman said that euro-area leaders will not provide a complete fix to the debt crisis at their next meeting.

G-20 finance ministers and central bank governors concluded weekend talks in Paris endorsing parts of the emerging plan to avoid a Greek default, bolster banks and curb contagion. Stocks erased earlier gains after Steffen Seibert, German Chancellor Angela Merkel’s chief spokesman, told reporters in Berlin that European leaders won’t fulfill “dreams” of a quick end to the debt crisis at the Oct. 23 summit.

National benchmark indexes fell in all of the 18 western- European markets. France’s CAC 40 Index slipped 1.6 percent. Germany’s DAX Index lost 1.8 percent and the U.K.’s FTSE 100 Index fell 0.5 percent. Greece’s ASE Index plunged 3 percent.

National Bank of Greece sank 10 percent to 1.63 euros. Piraeus Bank SA retreated 9.1 percent to 26 euro cents. EFG Eurobank Ergasias tumbled 9.5 percent to 66.1 euro cents.

G4S Plc slumped 22 percent to 219.9 pence for its biggest slump in seven years. The world’s largest security provider agreed to acquire ISS for about 5.2 billion pounds ($8.2 billion), of which 3.7 billion pounds is assumed debt, to add cleaning and other facilities-management services and accelerate expansion in emerging markets.

BP Plc rose 2.2 percent to 425.55 pence. BP, Europe’s second-largest oil company, said Anadarko will pay to settle all claims over the world’s largest accidental oil spill.

SGL Carbon SE soared 13 percent to 42.75 euros, its highest price since August 2008. Bayerische Motoren Werke AG plans to buy a stake in the German maker of carbon and graphite materials, Spiegel said, citing an unidentified manager at the automaker.

Air France-KLM Group, Europe’s second-largest airline by sales, increased 1.4 percent to 5.61 euros. The company’s board meets today to vote on ousting Chief Executive Officer Pierre- Henri Gourgeon, according to two people with knowledge of the proposals.

U.S. stocks fell, after the biggest weekly gain for the Standard & Poor’s 500 Index since 2009, as Wells Fargo & Co. slumped and a German government spokesman damped optimism of a quick fix to Europe’s debt crisis.

Dow 11,482.64     -161.85        -1.39%, Nasdaq       2,629   -39.12 -1.47%, S&P 500    1,209.10       -15.48         -1.26%

Gauges of financial and raw material companies had the biggest declines in the S&P 500 among 10 groups, falling at least 2.5 percent.

Wells Fargo, the largest U.S. home lender, lost 6.2 percent as third-quarter revenue dropped and margins narrowed. Alcoa Inc. and 3M Co. slumped more than 2.8 percent to pace losses among companies most-tied to the economy.

Citigroup Inc. rallied 0.6 percent to $28.58. The third- biggest U.S. bank said profit rose 74 percent, beating analysts’ estimates on a $1.9 billion accounting gain and a reduction in losses tied to soured loans.

Gannett slid 8.6 percent, the most in the S&P 500, to $10. The owner of 82 newspapers and 23 television stations reported third-quarter profit decreased 1.6 percent as publishing revenue, including advertising and circulation, declined 5.3 percent.

El Paso Corp. surged 24 percent to $24.26. The cash and stock offer is valued at $26.87 per El Paso share, or 37 percent more than the Oct. 14 closing price, Houston-based Kinder Morgan said in a statement yesterday. The combined company would have 67,000 miles (107,000 kilometers) of gas lines and eclipse Enterprise Products Partners LP as the biggest U.S. pipeline operator.

More Europe, not less, is the solution and need stricter control on national budgets.

Gold prices have repeated the movement of crude oil and stock markets: in the middle of the day rose to a three-week high as optimism after meeting leaders of G20, and then fell after a "cooling" Angela Merkel statement.

Today, December gold futures topped $ 1696.8, with the maximum of 23 September, andnow the futures price is $ 1682.9 on the Comex in New York.

Crude oil slipped from the highest level in a month after Germany said European Union leaders won’t provide a complete fix to the region’s debt crisis, damping hopes for a quick rescue plan.

Oil fell as much as 1.1 percent after climbing above $88 a barrel as Chancellor Angela Merkel said expectations that rescue plans to be announced at an Oct. 23 summit will speedily address Europe’s problems were “dreams.” Prices also weakened as data showed manufacturing in the New York region contracted in October at a faster pace than forecast.

Crude for November delivery fell 63 cents, or 0.7 percent, to $86.17 a barrel at 10:04 a.m. on the New York Mercantile Exchange. Earlier it gained as much as 1.6 percent to $88.18 a barrel, the highest since Sept. 16, on forecasts that China may say tomorrow its economy grew more than 9 percent last quarter.

Crude gained earlier on speculation China’s economy will maintain growth rates.

Gross domestic product in the nation, the world’s second- biggest consumer of crude, increased 9.3 percent in the third quarter from a year earlier, according to the estimate of economists.

Brent oil for December settlement fell $1.38, or 1.2 percent, to $110.85 a barrel on the London-based ICE Futures Europe exchange. Front-month futures rose 7.8 percent last week.

- Citigroup: Q3 EPS of $1.23 beats by $0.42. Revenue of $20.8B (flat Y/Y) beats by $1.2B. Shares +2.4% premarket.

Currently FTSE  5,508 +41.65 +0.76%, CAC   3,234 +15.94 +0.50%, DAX 6,017 +49.47 +0.83%.

On Friday the euro extended its biggest weekly gain versus the dollar since January as Group of 20 finance ministers began a two-day meeting to discuss plans to tackle Europe’s debt crisis. The euro rose versus the dollar as Treasury Secretary Timothy F. Geithner said “Europe is clearly” moving to a crisis solution. The yen fell against the dollar on speculation Japanese authorities will take steps to curtail their currency’s gains.