Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Spanish Stocks Underperform, Euro Boosted By Manufacturing Data

02/01/2013 | 03:06am US/Eastern

Spanish stocks were under pressure Friday, weighed by early weakness in the banking sector, while the euro hit its highest level against the dollar in 14 months as investors cheered the euro area's manufacturing data.

Banco Bilbao Vizcaya Argentaria, Caixabank and Banco Popular all fell heavily as troubled real estate loans continued to unsettle Spanish lenders.

BBVA, the second-biggest bank in Spain, posted a slim profit for the fourth quarter and said profit was down 44% for the full year. Separately, savings bank Caixabank's 2012 net profit plunged 78%.

Investors also digested Spain's decision late Thursday to lift its ban on the short-selling of all stocks trading on local exchanges.

The euro rose to $1.3640, its highest level in 14 months, while rising to Y125.00, levels last seen in May 2010.

Upbeat manufacturing data improved the mood. Swiss manufacturing activity rose to the highest level in one-and-a-half years in January, posting the fourth straight monthly gain. Activity in Spain's manufacturing sector rose to 46.1 in January from 44.6 the previous month. The euro-zone as a whole also came in ahead at 47.9 in January, above views for 47.5 and better than December's figures. The figure got a boost from better-than-expected German data.

"While the index remains consistent with a decline in activity in [Spain's] manufacturing sector and has been below the 50 break-even level for 21 months, it is now at its highest level since June 2011," said Ricardo Santos, European Economist at BNP Paribas Corporate & Investment Bank.

Performance in the rest of Europe was relatively sanguine ahead of a raft of important data. U.S. and euro-zone employment data will be in sharp focus.

In other corporate news, LVMH Moet Hennessy stocks were under pressure as it reported full-year net profit of 3.42 billion euros ($4.62 billion), slightly below analysts' expectations of EUR3.58 billion.

Credit Agricole started lower, but quickly reversed losses after announcing its fourth-quarter results will be hit by goodwill impairment charges totaling EUR2.68 billion. The charges comes in addition to impairments already announced last week. The French bank reassured the net impairment charge won't affect its solvency or liquidity.

Electrolux slumped despite posting strong volume growth in North and Latin America during the fourth-quarter profits, as it warned it expects demand for core appliances in Europe to decline this year.

Performance in Asia was mixed after Chinese manufacturing delivered a muddled message. The official purchasing managers index came in at 50.4 in January, slightly lower than December reading and below economists' estimates.

The final reading on HSBC's purchasing managers index--a survey more skewed towards smaller, private companies than the official reading--rose to a two-year high.

In the U.S., equity markets were slightly weaker as investors weighed a mixed bag of data.

The number of U.S. workers filing first-time applications for unemployment benefits rose sharply last week. Initial jobless claims increased by 38,000 to 368,000, more than expected and the biggest jump since early November.

Chicago-area manufacturing data helped European markets pare losses, with the Chicago Business index climbing to its highest level since April.

Write to Nina Bains at nina.bains@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news
Date Title
11:39p CALIFORNIA ASSOCIATION OF NONPROFITS : An update on the minimum wage (bad)
11:32p WESTAR ENERGY : Bill sparks power line rights feud ; Westar wrestles KCP&L over transmission control
11:23p SPROTT MOLYBDENUM PA : CuMoCo announces Silver stream funding and details of Annual General Meeting
11:23p QAF : Announcement of Appointment of Independent Director - Tan Teck Huat
11:23p QAF : Announcement of Appointment of Independent Director - Dawn Pamela Lum
11:16p AMGEN : Mystery cannabis 'consortium' reportedly interested in Longmont's Amgen facility
11:07p SOUTHWEST GAS : BRIEF: Ruptured natural gas line temporarily closes road
11:06p COLUMBIA SPORTSWEAR : stock jumps 13 percent on strong quarterly results (BRIEF)
11:03p ZILLOW C : BRIEF: This Queensridge home is crowned the king of clicks by Zillow
11:01p KLX : UPCOMING DEADLINE ALERT: Brower Piven Encourages Shareholders Who Have Losses in Excess of $100,000 from Investment in KLX Inc. to Contact Brower Piven before the Lead Plaintiff Deadline in Class Action Lawsuit
Latest news
Advertisement
Hot News 
AVENIR TELECOM : CSU textiles, design museum opens four exhibits to mark major expansion
VENTURE LIFE : In GBP3.7 Million Fundraising To Buy Mouthwash Maker (ALLISS)
DEUTSCHE POSTBANK : self-service solutions put control in customers' hands
LONDON & ASSOCIATED PROPERTIES : AND ASSOCIATED PROPERTIES PLC - Director/PDMR Shareholding
Paragon Offshore to File for Bankruptcy
Most Read News
06:20p CALIFORNIA AIR RESOURCES BOARD : ARB Newsclips for February 12, 2016.
10:21p PGA TOUR : Palmer's ace a winner for lucky fan
10:01p ROBBINS GELLER RUDMAN & DOWD LLP : Files Class Action Suit Against Navient Corporation
09:41p BULLSEYE GLASS COMPANY : Voluntarily Suspends Hexavalent Chromium Use Pending Further Data Provided by Oregon DEQ
10:01p Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Aerojet Rocketdyne Holdings, Inc. (AJRD)
Most recommended articles
08:55p FOREX WEEKLY FORECAST : Dollar is the Big Loser until this Changes
08:50p US Dollar in Danger of Further Losses – Here are the Key Risks
08:40p Visa's investment in Square represents about 1 percent stake
08:30p China Reopens after Holiday Week, How Will the Yuan Respond?
08:15p Gold Rockets to Fresh Highs as Equity Rout Continues