European stocks steady as eurozone factory output falls

<p>Factory output in the eurozone fell in November, but the major stock indices have held their ground.</p>

The major European stock benchmarks have held their ground in trading this afternoon (January 14th) after official figures revealed factory output for the eurozone fell again in November 2012.

Manufacturing activity slumped by 0.3 per cent, according to Eurostat, marking the third month in a row of sliding data, with Spain and Portugal experiencing the sharpest slips of 2.5 per cent and 3.4 per cent respectively.

However, the pace of decline appears to be easing and November's dip is far less steep than the one per cent decrease experienced in October.

Nevertheless, the fall occurred in spite of analysts' forecasts that the industry would experience a gain in the latter part of the year, meaning production now stands at 3.7 per cent lower than one year previously.

At 12:20 GMT, the pan-European DJ Eurostoxx index rose by 0.3 per cent to 2725.9 points, while the Dax in Frankfurt rallied by 0.5 per cent to 7759.7 points.

Learn about the markets and CFD trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.