[This rally] does feel a bit overdone. We havent gotten anything signed and delivered in the U.S. yet, so its too early to start cheering, said Peter Dixon, strategist at Commerzbank in London. There is no real reason to expect markets to rally strongly from here. If we do get some gains it could turn out to be a temporary relief rally, which could be pulled back when earnings start to bite, he added. On the longer term, however, there should be more room for upside. By the year-end or early 2014 there should be more scope for a modest uptrend triggered by expectations for a better outlook for 2014, especially in the U.S. And of course, we would expect to see tapering come back onto the agenda. Investors will start to rotate out of fixed income and into equities, Dixon said. Among notable movers in the index, shares of Rio Tinto PLC /quotes/zigman/155899 UK:RIO -0.72% /quotes/zigman/182541/quotes/nls/rio RIO +2.62% /quotes/zigman/176317 AU:RIO +1.44% gained 4.3% after the heavyweight miner said its iron-ore output rose to a new quarterly record . /quotes/zigman/68270/quotes/nls/aapl AAPL +0.53% named the luxury-goods firms Chief Executive Angela Ahrendts as senior vice president of retail and online stores. U.S. deal optimism More broadly, investors in Europe welcomed developments in the fiscal negotiations in U.S., with the debt ceiling looming and the government shutdown moving into Day 15. On the Senate floor on Monday, Senate Majority Leader Harry Reid said he was very optimistic about concluding deals this week to raise the debt limit as well as end the government shutdown. Sen.
Europe stocks rally on U.S. budget deal progress
Registrations in September jumped 5.5 percent to 1.19 million vehicles, the Brussels-based European Automobile Manufacturers Association, or ACEA , said today in a statement. That narrowed the decline this year to 4 percent, for total deliveries of 9.34 million cars. Renault SA (RNO) and Daimler AG (DAI) posted the biggest gains last month as an economic recovery in the region spurred consumer spending . Demand surged 29 percent in Spain because of government-backed discounts of as much as 2,000 euros ($2,700) on vehicle trade-ins. Dealer rebates in Germany were the highest in three months. The European market is bottoming out and the next months will probably see a slow improvement, said Frank Schwope , a Hanover, Germany-based analyst with NordLB. After refraining from buying a new car because of the economic crisis, vehicles are now so old that they cant be repaired any more and need to be replaced. September European sales at Renault, based in the Paris suburb of Boulogne-Billancourt, rose 22 percent, while Stuttgart, Germany-based Daimler, the third-biggest maker of luxury vehicles , reported a 12 percent increase. Demand at regional market leader Volkswagen AG (VOW) climbed 5.8 percent. Improving Market The September gain, which included one more working day than a year earlier, was the biggest since a 7.8 percent jump in August 2011 and the third for this year. Still, deliveries — which include European Union members as well as Switzerland, Norway and Iceland — are set to contract in 2013 for a sixth consecutive year and hit a two-decade low. The situation is clearly improving, Carlos Da Silva, a Paris-based analyst with IHS Automotive, said in an e-mail. Europe is not in brilliant shape, yet the underlying trend of the market is calling for a certain dose of optimism. Among the regions five biggest markets, Spain posted the largest increase.
Europe’s car market grows in September from record low levels
(Logo: http://photos.prnewswire.com/prnh/20120109/CG31847LOGO ) Mark Hemsley, CEO of BATS Chi-X Europe, said: “As the industry looks ahead to the implementation of new reporting requirements with MiFID II, we see pan-European reporting services as a natural extension of our business. With BXTR we now offer one-stop, full-service trade reporting solutions, which will enable our customers to lower their costs and improve efficiencies in several areas, including settlement netting of trades that are off book.” The full BXTR offering complements and expands BATS Chi-X Europe’s existing Exchange Trade Report (ETR) service. Highlights of the BXTR service include: Single or multi-party Exchange Trade Reports enabling bilateral pre-negotiated trades to be brought on-exchange and passed through for clearing by Central Counterparties thereby introducing new settlement netting benefits and satisfying regulatory requirements. Trade Data Monitoring service enabling firms to meet their OTC post trade publication obligations under MIFID, in a flexible, cost effective manner. A Systematic Internaliser Quote service that provides a simplified off-exchange mechanism for broker dealers to meet their pre-trade transparency requirements. A service for MTFs allowing them to disseminate their trade reporting via BATS Chi-X Europe’s outbound market data. Over 10,000 reportable securities and Exchange Traded Funds. BATS Chi-X Europe was approved by the Financial Conduct Authority to operate a Trade Data Monitoring service in August 2013. All market data related to BXTR will be included in its existing market data feeds. Whilst such data represents considerable additional value to its market data, BATS Chi-X Europe recently confirmed that there will be no increase of its market data or trading fees for 2014. Additional information on BXTR is available on the www.batstrading.co.uk/trs Companies interested in learning more about BXTR may email SalesEurope@bats.com . About BATS Global Markets, Inc.
Europe prepares to come clean on hidden bank losses
The European car market has been a prime casualty of the continent’s economic crisis as hard-pressed consumers defer purchases and a number of leading makers such as Peugeot (PEUP.PA) have been forced into radical restructurings. Automotive industry association ACEA said on Wednesday new car registrations in the European Union climbed 5.4 percent from a year ago to 1.16 million vehicles in September, only the third monthly gain in the past two years. The figures echo findings earlier this month that sales of new cars had grown in France and Spain during September. ACEA’s numbers showed the improvement was led by a 12 percent rise in sales in top market Britain to 403,000 vehicles, while sales in Germany shrank 1.2 pct to 247,000. The monthly total was still the second-lowest September figure since ACEA began gathering data for the 27 EU member states in 2003. Industry watchers have been looking for signs of recovery after the EU car market crashed to record lows in August. “The worst is behind us. The decline in sales has considerably slowed and we are now witnessing signs of recovery in demand,” said Peter Fuss, senior advisory partner at the Global Automotive Centre of accountants EY (formerly Ernst & Young). “The sales, however, continue to be artificially boosted by huge discounts and self-registrations by dealers,” Fuss added, referring to cars still held in showrooms. He warned it would take at least two years before the market was strong enough to grow on its own without the aid of incentives. BETTER GAUGE In a sign of recovery in the ailing euro zone periphery, car demand in Greece, Ireland and Portugal jumped by double-digit rates, albeit from depressed levels. For the first nine months of the year as a whole, ACEA said registrations in Europe still fell 4 percent from the year before to 9.33 million, on the back of weak demand in Germany, Italy and France – and in the Netherlands, where sales have plummeted 29 percent year-to-date. September volumes may be a better gauge of underlying trends than August, since the latter’s results are artificially depressed given many European car buyers are on holiday. It is also a crucial month for the UK market, since it accounts for about 18 percent of annual volumes. The UK increase was the sixth straight double-digit monthly rise.
BATS Chi-X Europe Launches Suite of Pan-European Trade Reporting Services “BXTR”
Markets open in 2 hrs 47 mins Europe prepares to come clean on hidden bank losses Reuters Sun, Oct 13, 2013 9:22 AM EDT The European Central Bank (ECB) President Mario Draghi reacts during the monthly news conference in Frankfurt, February 9, 2012. REUTERS/Alex Domanski By John O’Donnell and Robin Emmott LUXEMBOURG (Reuters) – Euro zone countries will consider on Monday how to pay for the repair of their broken banks after health checks next year that are expected to uncover problems that have festered since the financial crisis. Nobody knows the true scale of potential losses at Europe’s banks, but the International Monetary Fund hinted at the enormity of the problem this month, saying that Spanish and Italian banks face 230 billion euros ($310 billion) of losses alone on credit to companies in the next two years. Yet five years after the United States demanded its big banks take on new capital to reassure investors, Europe is still struggling to impose order on its financial system, having given emergency aid to five countries. Finance ministers from the 17-nation currency area meeting in Luxembourg will tackle the issue of plugging holes expected to be revealed by the European Central Bank’s health checks next year. The president of the European Central Bank underscored the need for action in Washington at the meetings of the International Monetary Fund and the World Bank. “The effectiveness of this exercise will depend on the availability of necessary arrangements for recapitalizing banks … including through the provision of a public backstop,” Mario Draghi said on Friday. “These arrangements must be in place before we conclude our assessment,” he said. But the ministers’ talks face an additional hindrance because Germany’s finance minister, Wolfgang Schaeuble, is not expected to attend the two-day Luxembourg meeting. Germany, Europe’s biggest economy, in talks to form a new government. During the region’s debt turmoil, the European Union conducted two bank stress tests, considered flops for blunders such as giving a clean bill of health to Irish banks months before they pushed the country to the brink of bankruptcy. The ECB’s new checks are seen as the last chance to come clean for the euro zone as the bloc tries to set up a single banking framework, known as banking union. The debate opens amid ebbing political enthusiasm for banking union – originally planned as a three-stage process involving ECB bank supervision, alongside an agency to shut failing banks and a system of deposit guarantees.