European Equities In Green; Italy’s Turmoil In Focus

European Equities futures were seen advancing on Friday, while talks in the US over the country’s budget and debt ceiling still weigh and the situation in Italy is also in the spotlight.

Futures for the European Euro Stoxx 50 rose 0.15% higher at 2,914 at the time of writing, while German’s DAX futures edged 0.13% higher to 8,671.80 at the same time. Futures for the French CAC 40 advanced 0.07% to 4,191.80 and UK FTSE 100 futures gained 0.04% to 6,533.30.

European Equities – Market Movers

The discussion over how to raise the US debt ceiling is still ongoing at the same time as the federal budget debate, while the lawmakers are expected to pass a budget by September 30 to avoid a shutdown.

In Europe, investors are keeping an eye on the political turmoil in Italy, where Silvio Berlusconi’s party said they will resign if the former premier ousted from the parliament for a tax fraud conviction. Italy’s Prime Minister Enrico Letta is expected to meet with the President Giorgio Napolitano to discuss the situation. The Senate is due to vote on October 4 on the issue, whether to strip Berlusconi of his seat.

Mario Draghi, President of the European Central Bank is expected to give a speech in Milan at Bocconi University later in the day.

European Equities – Economic News

Italy’s government will be holding an auction of bonds maturing in five and ten years with coupons of 3.50% and 4.50% respectively, while the country has a target to raise €6 billion.

Italy is expected to release a business confidence survey for September, which is expected to show a rise from 92.9 to 93.4.

Meanwhile, in France the gross domestic data for the second quarter is expected to be released and estimated to show that both annual and quarterly readings will show improvements, advancing by 0.5% and 0.3% respectively.

In Spain, the adjusted retail sales are expected to show a fall by 7% in August on an annual basis.

While the Eurozone as a whole, is expected to show a rise in the September for both economic and consumer sentiments. The economic sentiment is expected to show an increase from 95.2 to 96 points, while the consumer index is estimated to hit 15 points.


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