European Markets Finished Mixed Due To Weak German Data

(RTTNews) - The European markets ended Thursday's session with mixed results. The markets were under pressure in early trade, following the release of another weaker than expected German economic report. Germany's exports declined the most in over six years in August, raising concerns over global demand.

Central banks were in focus after the release of the minutes from the ECB meeting and the decision by the Bank of England. Investors are also watching for the release of the minutes from the most recent Federal Reserve meeting later today. The minutes could shed some light on the outlook for interest rates after the Fed's decision to leave rates unchanged following the meeting.

The Bank of England decided to maintain its key interest rate unchanged at a record low in a split vote as Ian McCafferty went against majority for the third straight meeting.

In the meeting ended October 6, the Monetary Policy Committee voted 8-1 to hold interest rate at 0.50 percent, the bank said in a statement on Thursday, as seen in August and September.

The majority of members judged that the current stance of monetary policy remained appropriate, while McCafferty preferred a quarter-point hike. BoE policymakers unanimously decided to maintain the stock of purchased assets financed by the issuance of central bank reserves at GBP 375 billion.

On inflation outlook, the bank said it was likely to remain close to zero before picking up around the turn of the year. But it now appeared likely to remain below 1 percent until Spring 2016, it added.

Downside risks to the euro area growth and inflation outlook, mainly those from the slowdown in emerging economies and the volatility in forex markets, has "clearly increased", while it was too early to conclude that they will have a lasting impact, the minutes of the European Central Bank Governing Council rate-setting session, held on September 2-3 showed Thursday.

"There was broad agreement that the overall economic situation in the euro area had become more challenging since before the summer," the minutes said. Yet, the revisions to the outlook did not fundamentally alter the assessment of an ongoing moderate recovery and a gradual increase in inflation over the coming years.

"There was wide agreement that, while recent market volatility was a sign of increased risk and heightened uncertainty over the economic outlook, it was too early to form a sound judgment on whether such developments would have a lasting impact on euro area economic developments and, in particular, the medium-term outlook for inflation," the minutes said.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.04 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.06 percent.

The DAX of Germany climbed 0.23 percent and the CAC 40 of France rose 0.18 percent. The FTSE of the U.K. gained 0.61 percent and the SMI of Switzerland finished higher by 0.41 percent.

In Frankfurt, Volkswagen decreased 0.48 percent. The company's U.S. CEO, Michael Horn, testified before the U.S. Congress about the recent emission scandal.

Deutsche Bank dropped 2 percent, after it announced that it will take billions in charges for the third quarter and now expects a third quarter loss of 6.2 billion euros. The company may cut or eliminate its common dividend for fiscal 2015.

Deutsche Lufthansa gained 4.13 percent, after RBC upgraded its rating on the stock.

In Paris, Michelin increased 1.39 percent and car parts maker Valeo added 1.22 percent.

Societe Generale declined 1.30 percent and BNP Paribas surrendered 1.11 percent.

In London, Tullow Oil advanced 1.49 percent. The company announced that it has reached agreement with the Government of Gabon over its licences in the Onal Complex Fields. Following negotiations, Tullow has regained its 7.5% stake in the Onal Complex producing fields and the Ezanga block, formerly the Omoueyi exploration block.

Inmarsat, which backed its full-year guidance, dropped 3.74 percent.

After issuing its first-quarter update, Hays fell 7.32 percent. Fiat Chrysler Automobiles climbed 3.94 percent in Milan after reporting a tentative agreement with the workers union in the U.S.

Germany's exports declined most in more than six years in August, suggesting that a slowdown in emerging economies, especially China hurts global demand.

Exports plunged a seasonally adjusted 5.2 percent month-on-month in August, reversing a 2.2 percent rise in July, data from Destatis revealed Thursday. This was the biggest decline since January 2009, when it slid 6.9 percent.

At the same time, imports dropped 3.1 percent, in contrast to a 2.3 percent rise seen a month ago.

British house price growth slowed unexpectedly in September, latest survey from the Royal Institution of Chartered Surveyors showed on Thursday. The survey showed that monthly house price balance fell to +44 in September from +53 in August, which was the highest in more than a year. Economists had expected the balance to rise again to +55.

Permanent job placements in the U.K. increased at the slowest pace in two-and-a-half years in September, the Report on Jobs compiled by the Recruitment and Employment Confederation and KPMG showed Thursday.

The number of people placed in permanent jobs continued to increase in September, but the rate of expansion eased to a two-and-a-half year low.

After reporting modest increases in first-time claims for U.S. unemployment benefits in the two previous weeks, the Labor Department released a report on Thursday showing that initial jobless claims pulled back by more than expected in the week ended October 3rd.

The report said initial jobless claims fell to 263,000, a decrease of 13,000 from the previous week's revised level of 276,000. Economists had expected jobless claims to dip to 271,000 from the 277,000 originally reported for the previous week.