U.S. shares drop on Greece uncertainty, rate hike anticipation

NEW YORK - A setback in Greek debt talks pushed U.S. and European shares lower on Friday, along with investor views that positive U.S. data may accelerate the timing for a hike in interest rates.

Oil prices fell on concerns production may rise further.

The International Monetary Fund delegation left Greek debt negotiations on Friday because of "major differences" with Athens on the same day that EU officials held their first formal talks on the possibility of Greece defaulting.

"It's largely the Greek situation again, and that's been played out on a day-to-day basis where you had a huge rally followed by a decline predicated on whether they are coming closer or moving further from a resolution," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

However, the darkening Greek outlook failed to fluster Prime Minister Alexis Tsipras, who holed up with his negotiators after proclaiming optimism at an open air concert.

The euro inched higher against the dollar after Tsipras'comments even though equity and bond investors were skeptical.

"You have to question whether (the Greeks are) looking at reality," said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

U.S. Treasuries prices ended little changed, with longer-dated yields holding below seven-month highs as concerns about a Greek default supported safety demand for bonds ahead of a Federal Reserve policy meeting next week.

A U.S. consumer sentiment survey and production data, after strong retail sales data on Thursday, gave a rosy view of the U.S. economy ahead of the Federal Reserve's June 17 policy statement, which may provide clues on timing for the first U.S. rate hike in nearly a decade.

"Both of these led the market, coupled with yesterday's report, to think that the first hike from the Fed could be closer," said OakBrook's Sampson, adding that lift-off could be in the fall, ahead of her previous expectation.

The Dow Jones industrial average fell 140.53 points, or 0.78 percent, to 17,898.84, the S&P 500 lost 14.75 points, or 0.7 percent, to 2,094.11 and the Nasdaq Composite dropped 31.41 points, or 0.62 percent, to 5,051.10.

The S&P and the Dow showed slight gains for the week while the Nasdaq fell slightly.

Oil fell for a second straight day as investors took profits after Saudi Arabia said it was ready to raise production to record highs, adding to worries over global oversupply.

Brent crude settled down $1.24, or 2 percent, at $63.87. For the week, Brent ended up 0.7 percent. U.S. crude fell 81 cents, or 1.3 percent, to $59.96. It rose 1.5 percent on the week.

In the late afternoon, the dollar index was unchanged after a day of choppy trading against a basket of major currencies while the euro was essentially flat after rising earlier in the day.

MSCI's all-world country index fell 0.4 percent but was on track for its first weekly gain in four, while the pan-European FTSEurofirst 300 index fell 0.8 percent.

source: interaksyon.com

Wall Street little changed but S&P hits record

NEW YORK - U.S. stocks were little changed in thin trading on Monday as the S&P 500 notched its latest record high, but gains were curbed when an early rally in energy prices lost momentum.

Equities have trended to the upside of late, buoyed by data showing an improving economy and the U.S. Federal Reserve's commitment to be "patient" about raising interest rates. After the S&P 500 gained nearly 6 percent over the prior eight sessions, it notched its 53rd record close of the year on Monday.

The S&P energy index advanced 0.3 percent, pulling back from a gain of more than 1 percent as Brent and U.S. crude oil turned lower. Brent settled down $1.57 at $57.88 and U.S. crude settled down $1.12 at $53.61 a barrel.

In contrast to the fall in oil prices, consumer discretionary names were among the day's best performers, up 0.7 percent. General Motors rose 2.6 percent to $34.60. The S&P 500 retail sector rose 0.8 percent as Macy's Inc advanced 1.8 percent to $65.22 and Amazon.com was up 1 percent to $312.04.

"The nearer-term picture is, consumers are enjoying lower gas prices, it’s almost as if it is an alleviation of taxes," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

"Someone is getting hurt in this while the consumer is benefiting, and at some point it could come back to bite the market and the economy."

The Dow Jones industrial average fell 15.48 points, or 0.09 percent, to 18,038.23, the S&P 500 gained 1.8 points, or 0.09 percent, to 2,090.57 and the Nasdaq Composite added 0.05 points to 4,806.91.

The speed and scale of the rally could cap further upside, especially in the final trading week of the year, when many market participants are out on holiday and catalysts are limited. Volume is expected to remain light, which could exacerbate volatility. The stock market will be closed on Thursday for New Year's Day.

About 4.78 billion shares traded on U.S. exchanges on Monday, well below the 7.18 billion average this month, according to BATS Global Markets.

Gilead Sciences Inc rose 3.7 percent to $97.30 as one of the S&P 500's biggest percentage gainers after Morgan Stanley upgraded the stock to "overweight" from "equal-weight."

LiveDeal Inc jumped 19.1 percent to $3.92 on volume of 13.6 million shares, to dwarf its 50-day average of about 455,000 shares, after the company reported 2014 results.

NYSE advancing issues outnumbered decliners 1,800 to 1,299, for a 1.39-to-1 ratio; on the Nasdaq, 1,438 issues rose and 1,320 fell for a 1.09-to-1 ratio favoring advancers.

The S&P 500 posted 68 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 160 new highs and 39 new lows.

source: interaksyon.com

S&P 500 ends at record high on Fed hopes

NEW YORK - The S&P 500 closed at another record high on Monday as expectations were high that the Federal Reserve will keep its stimulus in place when it meets this week.



But the overall market was little changed, with the Dow and Nasdaq ending down slightly, after the recent sharp run-up in the stock market lost some momentum.



The S&P 500 has risen 6.4 percent since October 8, when it hit its lowest point during the U.S. government's partial shutdown and the debate over raising the debt ceiling. The benchmark index is up 23.6 percent for the year so far.

Relief over the end of the political impasse and investor expectations that the Fed will keep stimulus measures in place for at least several months because of the 16-day shutdown have propped up prices. Fed policymakers will meet on Tuesday and Wednesday.



"I would like to say it's all about people waiting for the Fed, but I don't know what they're waiting for because I don't expect any change in Fed policy this week, given the fact they pointed out repeatedly the fiscal issues they're cognizant of," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.



"My concern with the market at this level is that without signs eliciting some evidence the economy is actually strengthening from the pace we've had, the multiple expansion doesn't seem rational."



Shares of Apple Inc rose 0.7 percent to $529.88 ahead of the release of its earnings, expected after the bell. While Apple's advance helped the S&P 500, the consumer staples sector index .SPLRCS, up 1.2 percent, gave the S&P its biggest boost.



A number of traders appeared to be picking up call options on the Consumer Staples Select Sector SPDR fund, which rose 1.3 percent, on hopes that the sector will continue to perform well through the end of the year.



The Dow Jones industrial average dipped 1.35 points, or 0.01 percent, to end at 15,568.93. The Standard & Poor's 500 Index gained 2.34 points, or 0.13 percent, to finish at a record 1,762.11. The S&P 500 also posted another lifetime intraday high at 1,764.99.


The Nasdaq Composite Index slipped 3.23 points, or 0.08 percent, to close at 3,940.13.

In extended-hours trading, Apple's shares were flat after recovering from a 5 percent drop following the tech bellwether's results. Wall Street had hoped for a stronger beat on quarterly sales after the iPhone maker predicted in September that its revenue and margins would come in at the high end of its own forecasts.

Apple's stock price has climbed 8.8 percent since the end of August.

Among the latest signs that the economy's momentum may be easing, U.S. manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3-1/2 years, according to economic data released on Monday.

On the down side, Dow component Merck & Co fell 2.6 percent to $45.35 and was one of the biggest drags on the Dow after the company reported a decline in sales of its Januvia diabetes treatment, raising concerns about growth prospects for its biggest product.

Biogen Idec posted a rise in its third-quarter profit and boosted its full-year earnings and revenue outlook, sending the U.S. biotech company's stock up 0.9 percent to $254.43.

Based on Thomson Reuters data through Monday morning, S&P 500 earnings are expected to have risen just 3.4 percent in the third quarter over the year-ago period.

Of the 249 companies in the S&P 500 that have reported earnings so far, 69.1 percent beat analysts' expectations, above both the 63 percent beat rate since 1994 and the 66 percent rate for the past four quarters.


Revenue has been lackluster, however, with growth seen at 2.2 percent for the quarter. Just 53.9 percent have beaten sales estimates, below the 61 percent rate since 2002, but above the 49 percent rate for the past four quarters.

On the acquisition front, Mosaic Co agreed to buy CF Industries Holdings Inc's phosphate mining and manufacturing business for $1.2 billion in cash. Shares of CF climbed 4.2 percent to $218.36 while Mosaic gained 1.6 percent to $46.67.

source: interaksyon.com

Wall Street rises on economy, but Syria concerns limit gains

NEW YORK - U.S. stocks closed modestly higher on Thursday as the economy showed signs of improvement, but uncertainty over possible military action against Syria continued to pressure markets.



Talks that could lead to a major deal in which U.S. phone company Verizon buys the part of Verizon Wireless it doesn't already own from Vodafone helped push stocks higher.



Wall Street was solidly higher most of the session but pared gains in the last hour on concerns over Syria. Many in the market expect a strike by the United States and its allies because of an alleged poison gas attack by government forces that killed Syrian civilians. U.S. officials said a response would be "discrete and limited.



"That there will be an attack is priced into markets, but there's no way the market appreciates the implications beyond that if the U.S. were to go to war," said Joe Tanious, global market strategist at J.P. Morgan Funds in New York.



"It will create a lot of side effects the market isn't aware of, with the impact on oil the main complication."



U.S. crude futures have spiked 2.2 percent this week on tensions oil supply from the Middle East will be interrupted.



Stocks rose after the government said in an upwardly revised estimate the economy expanded by a stronger-than-expected 2.5 percent in the second quarter. In a separate report, it said weekly jobless claims fell more than anticipated last week, a possible sign that hiring improved in August.



The Dow Jones industrial average was up 16.36 points, or 0.11 percent, at 14,840.87. The Standard & Poor's 500 Index was up 3.21 points, or 0.20 percent, at 1,638.17. The Nasdaq Composite Index was up 26.95 points, or 0.75 percent, at 3,620.30.



The S&P was unable to close above its 100-day moving average for a third straight day, an indication that near-term momentum may fade.



The robust data could bolster the case for the Federal Reserve to soon wind down a major economic stimulus program that has driven a rally of more than 15 percent in the S&P 500 this year.



The data "reiterates that the economy continues to grow, which is supportive to risk assets and bodes well for the prospect of future growth," said Tanious, who helps oversee $1.5 trillion in assets.



"That the market is reacting positively to this shows that investors have become more comfortable with the idea of tapering."



U.S.-listed shares of Vodafone Group jumped 8.1 percent to $31.80 as the biggest percentage gainer on the Nasdaq 100 index after the company said it was in talks with Verizon Communications to sell its 45 percent stake in their U.S. joint venture, Verizon Wireless.



If completed, the deal could be worth around $130 billion, according to a person familiar with the situation, who asked not to be identified. Verizon rose 2.7 percent to $47.82 as one of the top boosts to the Dow.



Homebuilding stocks were among the strongest of the day. Lennar Corp rose 3.2 percent to $32.62 while PulteGroup Inc was up 3.1 percent to $15.86.



After the market's close, software company Salesforce.com Inc raised its full-year revenue outlook, sending its shares 6.8 percent higher to $46.60.



Guess Inc jumped 13 percent to $30.82 in the wake of second-quarter results that beat Wall Street estimates, bucking a trend of falling sales for apparel retailers.



Campbell Soup Co fell 3.1 percent to $43.33 after reporting revenue that missed expectations.



About 63 percent of companies traded on the New York Stock Exchange closed higher while almost 70 percent of Nasdaq-listed shares ended higher. Volume was light, with about 4.74 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.31 billion shares.

source: interaksyon.com

Dow, S&P slip from record highs on year's lowest volume

NEW YORK - The Dow and the S&P 500 dipped on Monday in the thinnest volume so far this year, following their record closing highs last week as a lack of major news left the market directionless.

Although about 100 companies in the S&P 500 are still scheduled to report earnings, the season is winding down sharply after last week's deluge. The week is also thin in terms of market-moving macroeconomic data.

"It was a pretty quiet day," said Paul Zemsky, head of asset allocation at ING Investment Management in New York. "We're almost done with earnings, and the quarter will remain lackluster. It's hard to disappoint, but earnings are not fantastic."

About 4.6 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, the lowest for a full day of trading so far this year. Daily volume has averaged about 6.4 billion shares this year. Last year, August posted the lowest monthly average volume on U.S. exchanges.

The technology sector was the S&P 500's best performer. A rally in Apple and Facebook shares helped the Nasdaq Composite Index finish Monday's session with a slim gain. Apple rose 1.5 percent to $469.45 after the United States overturned a ban on the sale of some older iPhones and iPads. Facebook, which was the Nasdaq's most actively traded stock, jumped 3 percent to $39.19 after a brokerage upgrade.

Data suggesting economic recovery in the UK and U.S. economies was improving showed British businesses boomed and activity at euro-zone companies expanded modestly in July, while growth in the U.S. services sector rebounded from a three-year low.

"PMIs were better than people thought, and that tells us this idea that the second half could be stronger is still valid. But right now, it's just wait and see," Zemsky said.

The Dow Jones industrial average fell 46.23 points or 0.3 percent, to end at 15,612.13. The S&P 500 slipped 2.53 points or 0.15 percent, to finish at 1,707.14. But the Nasdaq Composite Index added 3.364 points or 0.09 percent, to close at 3,692.951.

United Technologies Corp and The Travelers Companies were the Dow's biggest percentage decliners. United Technologies shares slid 1 percent to $106.64, while Travelers shares fell 1 percent to $83.15.

The Washington Post Co. shares shot up 3.8 percent after the bell following news that Amazon Inc founder Jeff Bezos has agreed to pay $250 million to buy the publishing company's newspaper assets, including its flagship paper - known for its coverage of the Watergate break-in that led to the resignation of President Richard M. Nixon in 1974.

Washington Post Co. Class B shares ended the regular session at $568.70, up 1.6 percent, after climbing to an intraday high at $576, their highest level in more than four years.

The S&P 500 has risen for five of the past six weeks, gaining more than 7 percent over that period. The index closed at an all-time high on Friday despite a mixed reading on the labor market, which showed that hiring slowed in July, but the U.S. unemployment rate ticked lower.

Friday marked the second day in a row for the Dow and the S&P 500 to end at record closing highs, with the Dow ending at 15,658.36 and the S&P 500 at 1,709.67.

The slip in the unemployment rate means that the Federal Reserve is closer to dialing back its $85 billion-a-month bond-buying program, Dallas Federal Reserve Bank President Richard Fisher said on Monday. The stimulus program is given credit for a large part of this year's rally in the U.S. stock market.

On the earnings front, shares of Tyson Foods climbed 4.1 percent to $29.69, a record closing high, after giving a full-year revenue outlook that exceeded expectations.

In contrast, U.S.-listed shares of HSBC Holdings Plc fell 4.5 percent to $55.37 after the company reported a drop in revenue, hurt by slower emerging markets.

Shares of retailer Fossil dropped 6 percent to $107.42 on three times their recent average volume after Barclays downgraded the stock to "underweight."

Of the 391 companies in the S&P 500 that have reported earnings for the second quarter, 67.8 percent have topped analysts' expectations, in line with the average beat over the past four quarters, data from Thomson Reuters showed. About 55 percent have reported revenue above estimates, more than in the past four quarters but below the historical average.

U.S.-listed shares of Compugen Ltd soared 44.5 percent to $7.89 after the company said it would enter into a cancer research partnership with Bayer AG.

Declining issues outnumbered advancers on the NYSE by a ratio of about 3 to 2. On the Nasdaq, the opposite trend prevailed, with 14 stocks rising for about every 11 that fell.

source: interaksyon.com

US stocks end higher for sixth straight week, tech leads

NEW YORK - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.

The S&P 500 also posted a sixth straight week of gains for the first time since August.

The technology sector led the day's gains, with the S&P 500 technology index up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.

Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.

AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.

Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.

"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.

The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.

"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.

The Dow Jones industrial average ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.

For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.

Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.

Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.

Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.

Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.

Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.

Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.

The CBOE Volatility index, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.

"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.

source: interaksyon.com

Obama 'cliff' remarks spark US stocks sell-off

NEW YORK - US stocks tumbled Wednesday as President Barack Obama challenged Republicans to accept tax increases for the wealthy in a deal to avert the year-end fiscal cliff.

After opening higher, helped by Cisco Systems's strong earnings, share prices slid and then turned more sharply downward after Obama laid out his terms for a deal in his first news conference since his re-election.

Wall Street stocks closed at their lowest level in more than four months after Obama drew a hard line against Republicans in the battle for a compromise to avoid automatic spending cuts and tax increases that take effect in January.

"The president's statements failed to inspire investor confidence, thus resulting in an afternoon sell-off," said Briefing.com analysts.


The Dow Jones Industrial Average dropped 185.23 points (1.45 percent) to 12,570.95, its lowest close since June 26.

The broad-market S&P 500 lost 19.04 (1.39 percent) at 1,355.49, while the tech-rich Nasdaq Composite gave up 37.08 (1.29 percent) at 2,846.81.

Bank of America led the Dow rout, sliding 3.6 percent, followed by General Electric, down 3.2 percent.

Dow component Cisco was the sole blue-chip gainer, jumping 4.8 percent after its 48 cents earnings per share for the fiscal first quarter beat analyst expectations by two cents.

Abercrombie & Fitch, the retailer of trendy clothing for youth, soared 34.5 percent after turning in a 40 percent jump in third-quarter profit and sharply increasing its forecasts for the full year.

Office supplies chain Staples added 2.6 percent after reporting an expected quarterly loss due to impairment charges mainly related to its struggling European business.

Excluding that, its earnings per share came in flat, and around analyst expectations.

On the Nasdaq, Dell added 1.9 percent and Facebook gained 12.6 percent, despite a lifting of a share-sale ban for insiders, while Apple fell 1.1 percent.

Starbucks dropped 2.9 percent after announcing it would buy tea chain Teavana for $620 million.

Bond prices were mixed.

The 10-year US Treasury yield was unchanged from Tuesday at 1.59 percent, and the 30-year rose to 2.73 percent from 2.72 percent.

Bond prices and yields move inversely.

source: interaksyon.com

World shares gain as U.S. storm damage seen limited

LONDON - World shares rose modestly while the dollar weakened on Tuesday as the initial impact of a massive storm in the United States looked to have been less severe than feared.

The greenback was also knocked by a resurgent yen after the Bank of Japan disappointed many investors by easing policy less aggressively than had been hoped after a slump in factory output and exports during September.

However, activity was subdued everywhere since U.S. share and bond markets were closed on Tuesday as one of the biggest storms to hit the country, codenamed Sandy, left large areas of New York City without power or public transport.

The FTSEurofirst 300 index of top European shares was up 0.75 percent at 1,101.90 points and, after gains earlier in Asia, the MSCI world equity index had risen 0.3 percent to 328.88 points.

U.S. stock index futures, which kept trading in Europe, edged lower but volumes were very light. .N

Strategists said it was too early to tell what impact the destruction caused by Sandy might have on markets.

"Volumes are very low with Wall Street (closed), which makes today's gains quite fragile, and the potential impact of the storm for the insurance sector, estimated at around $20 billion, has not been priced in yet," said Patrice Perois, trader at Kepler Capital Markets in Paris.

Demand for the dollar and U.S. bonds tends to rise in times of reduced appetite to take on risk, but if widespread damage prompts speculation the U.S. Federal Reserve could ease monetary policy further to shore up the economy, they could fall back.

Across European stock markets' attention was on corporate earnings with results from well known names like Deutsche Bank, Swiss banking giant UBS and oil major BP lifting prices. UBS shares leapt over four percent as it confirmed a plan to cut 10,000 jobs.

Britain's FTSE 100 index was up 0.8 percent, Germany's DAX index up 0.9 percent and Switzerland's SMI index up 0.5 percent.

Modest BOJ move

In currency markets, the yen rose broadly after a new plan from the Bank of Japan to increase its asset purchases by 11 trillion yen ($138 billion) disappointed some market players who had positioned for a more aggressive increase.

"It was a very skeptical response to the BOJ policy meeting, made worse by the fact they have revised lower the growth and inflation outlook," said Jane Foley, senior currency strategist at Rabobank. "That has seen the yen unwind a lot of the softer tone we saw going into this meeting."

The dollar hit a one-week low of 79.28 yen and was down 0.3 percent against a basket of major currencies at 79.67 points.

The weaker dollar helped the European common currency climb 0.4 percent to $1.2958, with lower yields on Spanish and Italian bonds adding to the better mood.

But gains for the euro are still expected to be limited by continuing questions over whether Greece can agree a deal with its creditors, and when Spain might request financial aid.

Spain fell deeper into recession in the third quarter and prices rose sharply in October, according to new data, keeping pressure on the government to take some action as the prospect of further civil unrest grows.

"Spain's economy is suffering terribly, which will continue to hit government revenues, and a modest decline in bond yields will not solve the problem," said Kit Juckes, strategist at Societe Generale.

Prime Minister Mariano Rajoy has maintained an ambivalent stance towards applying for a politically embarrassing rescue that would kickstart an ECB bond-buying programme and ease financing costs.

Investors, too, seem willing to wait; 10-year Spanish bond yields were little changed at 5.66 percent.

German government bonds, the benchmark of European fixed-income markets, were also mostly flat.

Italy was even able to sell 7 billion euros of new five- and 10-year government bonds at its lowest cost since May 2011.

Italian 10-year yields were 3 basis points lower on the day at 4.98 percent, having risen about 25 basis points in the last two weeks.

Oil floats

In oil markets, prices were edging higher as traders awaited news of the damage inflicted by Sandy on refineries and pipelines, although weaker demand from the storm-hit region capped gains.

Brent crude for December rose 13 cents to $109.57 a barrel, recovering from a fall to $108.75 earlier, while U.S. crude for December was up 40 cents at $85.94.

U.S. gasoline futures were little changed at $2.7530 a gallon, after climbing more than 5 cents on Monday on expectations of tighter supply.

"People are just holding back a little bit to see if there's any real damage and impact, and at the moment it's too hard to see," said Bjarne Schieldrop, an analyst at SEB in Oslo.

source: interaksyon.com