European Markets Pulled Back After Consumer Prices Stagnated

(RTTNews) - The majority of the European markets ended Friday's session in the red. The markets got off to a positive start, but quickly slipped into negative territory. However, most of the markets pared their losses going into the close.

Eurozone consumer prices remained unchanged in October, offering little relief to the European Central Bank policymakers, who are increasingly concerned over the lack of inflationary pressure in the region and are willing to expand policy further in December. Adding to their worries, unemployment remained high despite a marginal decline in September.

The ECB aims to keep inflation 'below, but close to 2 percent'. After leaving rates and the size of asset purchases unchanged this month, ECB President Mario Draghi strongly hinted that the bank may boost its stimulus in December as policymakers are increasingly concerned over the persistence of negative inflation.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.10 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.38 percent.

The DAX of Germany climbed 0.15 percent, but the CAC 40 of France fell 0.12 percent. The FTSE of the U.K. declined 0.84 percent and the SMI of Switzerland finished lower by 0.21 percent.

In Frankfurt, RWE increased 4.65 percent and E.ON added 1.29 percent.

Merck advanced 1.98 percent and Fresenius gained 1.40 percent.

In Paris, Renault surged 4.81 percent after reporting third-quarter results.

Airbus climbed 3.81 percent. The French aerospace giant reported increased profit for the third quarter, and announced production increase for its Single Aisle Family. The company also reported a billion euros share buyback.

BNP Paribas added 1.60 percent after reporting increased profit for the third quarter. Credit Agricole and Societe Generale were notably higher.

In London, International Consolidated Airlines, which reported third-quarter results, fell 3.10 percent as its outlook trailed estimates.

Royal Bank of Scotland decreased 1.56 percent. The company's third quarter adjusted operating profit was 842 million pounds, compared to 2.05 billion pounds, previous year.

Barclays dropped 2.59 percent, extending its weakness from the prior trading session. The bank reported a decrease in its third quarter profit on Thursday.

Banco Bilbao Vizcaya Argentaria, which reported quarterly figures, dropped 3.46 percent in Madrid.

Eurozone consumer prices stagnated in October, while the jobless rate unexpectedly fell to its lowest level in about two-and-a-half years in September, preliminary figures from Eurostat revealed Friday. The consumer price index remained unchanged from the same month a year ago, after declining 0.1 percent in September. The outcome was in line with economists' expectations.

Separately, Eurostat announced that the unemployment rate for the euro area fell to 10.8 percent in September from a revised 10.9 percent in August. Economists had expected the rate to remain unchanged at August's original figure of 11 percent. It was the lowest rate recorded in the euro area since January 2012, the agency said.

Germany's retail sales remained unchanged in September, defying economists' expectations for an increase, figures from Destatis showed Friday. The calendar and seasonally adjusted retail sales, in real terms, showed no variations in September, following a 0.7 percent decrease in August. Economists had expected a 0.4 percent increase for the month.

French producer prices declined further in September, largely due to a sharp decrease in prices of coke and refined petroleum products, the statistical office INSEE showed Friday. Producer prices in the French market fell 2.6 percent year-over-year in September, which was worse than the 2.1 percent decrease in August.

French consumer spending remained unchanged in September after rising in the previous months, figures from the statistical office INSEE showed Friday. Consumer spending in volume showed no variations in September after a 0.1 percent slight rise in August, which was revised from a flat reading.

Consumer confidence in the United Kingdom slid to a four-month low in October, the latest survey from GfK showed on Friday with an index score of +2. That was shy of expectations for +4 and down from +3 in September.

Personal income and spending in the U.S. both saw modest increases in the month of September, a report from the Commerce Department revealed on Friday, although the upticks came in below economist estimates.

The report said personal income inched up by 0.1 percent in September after climbing by an upwardly revised 0.4 percent in August. Economists had expected income to rise by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month.

The Commerce Department said personal spending also crept up by 0.1 percent in September after rising by an unrevised 0.4 percent in the previous month. Spending had also been expected to climb by 0.2 percent.

Indicating a promising start to the fourth quarter, MNI Indicators released a report on Friday showing an unexpected expansion in Chicago-area business activity in the month of October. MNI Indicators said its Chicago Business Barometer jumped to 56.2 in October from 48.7 in September, with a reading above 50 indicating growth.

Economists had expected the index to show a much more modest increase to a reading of 49.2, which would have still indicated a contraction.

Consumer sentiment in the U.S. improved by less than previously estimated in October, according to a report released by the University of Michigan on Friday. The report said the final reading on the consumer sentiment index for October came in at 90.0 compared to the preliminary reading of 92.1.

The index remains above the final September reading of 87.2, although economists had expected the index to be upwardly revised to 92.5.