European equities hit pause button

LONDON: Europe’s major stock markets paused on Tuesday as investors digested key economic data and waited for US bank earnings, dealers said.

London turned flat as investors monitored news that annual British inflation jumped in September to 3.0 percent — the highest level in more than five years.

Frankfurt also flatlined despite news that German investor confidence inched upwards in October, according to the ZEW institute’s headline barometer.

Paris meanwhile dipped 0.1 percent and Madrid shed 0.3 percent amid ongoing uncertainty over the Catalan independence crisis and ahead of US industrial production data.

“European shares are trading little changed … as markets are awaiting data and earnings news out of the US later today,” said City of London Markets trader, Markus Huber.

US banks Goldman Sachs and Morgan Stanley are scheduled to post their third-quarter results.

“Whilst economic data currently seem to only have a limited impact on markets, mainly because most major central banks have laid out clearly their plans for the coming months, corporate data is a different matter,” Huber said.

“A sudden declining earnings or earnings outlook picture would certainly pose a problems for markets with traders unlikely to keep their current risk exposure for too long.

“Overall sentiment remains positive with a pickup in volatility looking rather unlike for now,” he said.

– Tokyo scales new heights –

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Asian equities diverged Tuesday as traders took a breather after recent strong gains, with more records on Wall Street unable to spur strong buying.

Tokyo however rose 0.4 percent to chalk up an 11th straight gain.

That put the benchmark Nikkei at a new 21-year high, as upbeat Japanese corporate earnings outweighed concerns about overheating.

While optimism remains over the world economy and corporate earnings — helping push global markets to all-time or multi-month highs — investors moved carefully as they await the next catalyst.

New York’s three main indices chalked up yet more fresh peaks on Monday thanks to a rally in banks and hopes that Donald Trump can still push through his economic agenda despite a series of setbacks for his legislative programme.

The dollar extended Monday’s gains against the euro following comments from Federal Reserve boss Janet Yellen hinting at a further interest rate rise this year, while dealers fret over Spain’s Catalonia crisis.

– Key figures around 1015 GMT –

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London – FTSE 100: FLAT at 7,529.33 points

Frankfurt – DAX 30: FLAT at 13,007.90

Paris – CAC 40: DOWN 0.1 percent at 5,358.21

Madrid – IBEX 35: DOWN 0.3 percent at 10,147.80

EURO STOXX 50: DOWN 0.1 percent at 3,601.56

Tokyo – Nikkei 225: UP 0.4 percent at 21,336.12 (close)

Hong Kong – Hang Seng: FLAT at 28,697.49 (close)

Shanghai – Composite: DOWN 0.2 percent at 3,372.04 (close)

New York – DOW: UP 0.3 percent at 22,956.96 (close)

Euro/dollar: DOWN at $1.1758 from $1.1796 at 2100 GMT on Monday