The European markets ended Tuesday's session with mixed results. Banks were among the best performing stocks. There was very little news or economic data released today that was capable of swaying the markets in any particular direction. The continuing question of the looming fiscal cliff in the United States remained in focus. Little if any progress has been made in the negotiations, after Republicans put forth a plan that would raise $800 billion in new revenue from taxes. The plan was shot down by the White House, largely because the plan lacked a tax increase on the wealthy.
Almost all the countries in Southern Europe will continue to see their economies contracting in 2013, European Central Bank policymaker Ewald Nowotny reportedly said Tuesday.
The trend of negative growth rates in these economies will continue into 2013, reports said citing Nowotny's remarks in Vienna. Meanwhile, other economies will continue to record low growth levels, Nowotny said.
Eurogroup Chairman Jean-Claude Juncker has called on Cyprus and its creditors to reach an agreement on the terms of the proposed bailout "in a timely manner," while offering to discuss the matter with Eurozone finance ministers as early as next week.
"I call on Cyprus and the Troika to conclude on the proposed terms of a programme in order to reach agreement on an adjustment package in a timely manner," he said in a statement issued after the Eurozone finance ministers meeting on Monday.
Juncker said the Eurogroup will discuss the capital needs of Cyprus' financial sector and its implications for program financing on December 13.
Juncker also confirmed that Spain will receive EUR 39.5 billion from the euro area bailout fund to recapitalize its banks by next week. Earlier on Monday, Spain had forwarded an official request for more aid for its ailing banking sector.
The British Chambers of Commerce on Tuesday downgraded U.K. growth forecasts for 2013 and 2014, citing public spending cuts and slow global growth, but upgraded the outlook for this year, which was the first upward revision since March 2011.
In its latest economic forecast, the BCC downgraded the growth forecast for 2013 to 1 percent from 1.2 percent, and the 2014 estimate to 1.8 percent from 2.2 percent. For 2012, the BCC projects 0.1 percent contraction, which is better than the 0.4 percent fall previously estimated in September.
The Bank of England said the appropriate international authorities should study the bankers' remuneration codes. The interim Financial Policy Committee of the BoE said the bankers' remuneration should reflect the full risks the management was taking.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.20 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.02 percent.
The DAX of Germany declined by 0.00 percent and the FTSE 100 of the U.K. fell by 0.12 percent. The CAC 40 of France gained 0.39 percent and the SMI of Switzerland advanced by 0.21 percent.
In Frankfurt, Deutsche Bank gained 1.41 percent and Commerzbank added 1.39 percent.
Henkel declined by 2.26 percent, after Credit Suisse downgraded the stock to ''Underperform'' from ''Neutral.''
Morgan Stanley downgraded Fresenius to ''Equalweight'' from ''Overweight.'' The stock fell by 1.44 percent.
United Internet sank by 8.37 percent, after Warburg Pincus LLC has reportedly offered to sell its 5.5 percent holding.
OC Oerlikon climbed by 1.78 percent. The company lifted its full year outlook and announced sale of units.
In Paris, EADS rose by 0.49 percent, extending the gains of the previous session when the Airbus maker said talks are on to change its shareholding structure.
Credit Agricole and Societe Generale advanced by 2.03 percent and 2.04 percent, respectively. BNP Paribas added 1.32 percent.
Neopost dropped by 5.66 percent. The company cut its full year revenue and operating margin forecast.
In London, TUI Travel climbed by 3.38 percent. The tour operator reported a higher profit for fiscal 2012, even as revenues were slightly down for the period. Further, the company said it is well positioned to continue to deliver long-term sustainable growth.
Plumbing and heating products distributor Wolseley reported higher trading profit and revenue for the first quarter, amid strong performance in the U.S., even as challenging conditions continued in Continental Europe. The stock finished up by 0.66 percent.
Rio Tinto gained 0.34 percent, after Credit Suisse added the stock to its ''European Focus List.''
Tullow Oil decreased by 5.76 percent. The company announced that its Zaedyus-2 appraisal well in French Guiana did not find any commercial hydrocarbons.
Royal Bank of Scotland climbed by 1.06 percent, Lloyds Banking Group increased by 0.49 percent and HSBC added 0.05 percent.
Producer price inflation in the euro area slowed less than economists expected in October, data released by statistical office Eurostat showed Tuesday. Producer price inflation eased to 2.6 percent in October from 2.7 percent each in September and August. Economists had forecast a faster slowdown to 2.5 percent.
Germany's third quarter exports increased from the same quarter last year, data from the Federal Statistical Office showed on Tuesday.
Exports rose by 3.6 percent to EUR 275 billion in the third quarter, largely driven by shipments to countries outside the European Union. Shipments to these countries surged 9.9 percent to EUR 122.3 billion and their share of total German exports rose to 44.4 percent.
Retail sales in the UK saw only a modest improvement in November as shoppers opted to wait for more bargains in the run-up to Christmas, a survey by the British Retail Consortium (BRC) revealed Tuesday. Retail sales values rose 0.4 percent on a like-for-like basis in November compared to a year earlier. On a total basis, sales were up 1.8 percent.
The UK's construction sector activity contracted unexpectedly in November, a survey by Markit Economics and the Chartered Institute of Purchasing & Supply (CIPS) revealed Tuesday. The headline Purchasing Managers' Index for the construction sector fell to 49.3 in November from 50.9 in the previous month. This is the lowest level of the index since August.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.