European Markets Finished Mixed, But Positive For The Week

(RTTNews) - The European markets ended Friday's session with mixed results. However, despite the terrorist attacks in Paris last week, the European markets ended the week with gains. There was very little economic data to drive the direction of trading at the end of the week. Investors were focused on dovish comments from European Central Bank President Mario Draghi, with the next ECB meeting now less than two weeks away.

In remarks to the Frankfurt European Banking Congress, Mario Draghi pledged that the ECB would do what it must to raise inflation as quickly as possible.

"At the December Governing Council meeting we will thoroughly assess the strength and persistence of the factors that are slowing the return of inflation towards 2 percent," Draghi said.

He added, "If we conclude that the balance of risks to our medium-term price stability objective is skewed to the downside, we will act by using all the instruments available within our mandate."

Draghi's remarks were seen as a sign that the ECB may ramp up its asset purchase program following its meeting next month.

The monetary stimulus measures already taken by the European Central Bank need more time to have a real impact on the Eurozone economy, but maintaining ultra-loose policy for a long time raises the risk of losing their efficiency, the bank's policymaker Jens Weidmann said Friday.

"We need to be aware that the longer we stay in ultra-loose monetary policy mode, the less effective this policy will become and the more the attendant risks and side-effects will come into play," Weidmann, who heads Germany's Bundesbank, said in a speech at the 25th European Banking Congress in Frankfurt.

He pointed out the exuberance in some financial markets and the problems faced by life insurers as examples.

"We should not ignore the risk that fiscal policy could get used to the very low interest rates," Weidmann added.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.10 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.26 percent.

The DAX of Germany climbed 0.31 percent, but the CAC 40 of France fell 0.08 percent. The FTSE of the U.K. gained 0.07 percent and the SMI of Switzerland finished higher by 0.08 percent.

In Frankfurt, RWE declined 1.08 percent and E.ON lost 0.87 percent.

Deutsche Bank weakened by 1.26 percent and Commerzbank surrendered 0.57 percent.

Volkswagen increased 2.27 percent and Daimler added 0.73 percent. BMW also finished higher by 0.53 percent.

In Paris, BNP Paribas decreased 1.82 percent and Societe Generale lost 1.70 percent. Credit Agricole also finished down by 1.87 percent.

Technip tumbled 3.96 percent and Total fell 0.74 percent.

In London, Barclays dropped 3.50 percent. Morgan Stanley downgraded its rating on the stock to "Equalweight" from "Overweight."

Imperial Tobacco gained 1.75 percent on reports that British American Tobacco is planning to make an offer to acquire the company. British American Tobacco finished up by 0.25 percent.

ABN Amro Group returned as a publicly traded company in Amsterdam today. The company priced its offering at €17.75 per share and the stock closed at €18.35.

Germany's producer prices declined at the fastest pace since early 2010, data published by Destatis showed Friday.

Producer prices decreased 2.3 percent in October from last year, the biggest fall since February 2010, when prices declined 3 percent. Producer prices have been falling since August 2013. Economists had forecast prices to fall 2 percent after easing 2.1 percent in September.

U.K. public sector net borrowing, excluding public sector banks, increased unexpectedly in October, figures from the Office for National Statistics showed Friday. The PSNB, excluding public sector banks, climbed to GBP 8.2 billion in October from GBP 7.1 billion in the same month last year. Meanwhile, it was expected to narrow to GBP 6.0 billion.

The leading index for China, which measures the future economic activity, increased at a slower pace in October, the results of survey by the Conference Board showed Friday. The Conference Board leading economic index rose 0.6 percent monthly in October, following a 1.6 percent spike in the previous month.