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 LeadersVideosCalendar 

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
02:08a PEUGEOT : Design for life ; Peugeot's latest 308 looks to have come of age, now boasting a complete range of PureTech petrol and BLUEHDI diesel engines....
02:07a NISSAN MOTOR : We need a Teesside Nissan
02:07a MAZDA MOTOR : Tripping the light fantastic
02:07a TAYLOR WIMPEY : Team take to field in style
02:05a JOHNSON CONTROLS : produces 100 millionth battery at its Burgos plant
02:05a NIOC NATIONAL IRANIAN OIL : Official: Iran to Offer Giant Oil, Gas Fields to Investors
01:55a China's Commerce Ministry defends devaluation, sees 'limited' impact
01:51a HSBC : PAYDAY GROAN ; Bank hol wages held up as computer glitch hits 275,000 HSBC transactions
01:50a PADDY POWER : MAN CITY v WATFORD Today ; 3PM BETTING BOYS
01:50a MICROSOFT : in charity cycle
Latest news
Advertisement
Hot News 
OPPORTUNITY INVEST MGMT : 28 augustus 2015 - PRESS RELEASE: Announcement OIM 28 August 2015
MOLYCORP : Massive Mojave mine Molycorp to close, taking nearly 500 jobs
CHALLENGER ACQUISITIONS : Says It Is Focused On Integrating Starneth
MAVEN INCOME & GROWTH VCT : 4 Net Asset Value Total Return Rises
BIG LOTS : Announces Quarterly Dividend On Common Stock
Most Read News
08/28 Woodbridge Fireplace Introduces Two New Fireplace Models
08/28 AER Issues Suspension Order to Nexen
08/28 SHAREHOLDER ALERT : Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in The Spectranetics Corporation to Contact Brower Piven Before the Lead Plaintiff Deadline in Class Action Lawsuit -- SPNC
08/28 PIVOTAL THERAPEUTICS : Announces Second Quarter Financial Results
08/28 BRASKEM 72 HOUR DEADLINE ALERT : Approximately 72 Hours Remain; Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors of Deadline in Class Action Lawsuit Against Braskem S.A. -- BAK
Most recommended articles
01:55a China's Commerce Ministry defends devaluation, sees 'limited' impact
08/28DJGRAIN HIGHLIGHTS : Top Stories Of The Day
08/28 WEEKLY TRADING FORECAST : FX Traders Brace for Huge Week Ahead
08/28 Focus turns to U.S. data as China slowdown looms
08/28 Australian Dollar at Risk on RBA, Rebuilding Fed Rate Hike Bets