German stocks were little changed as a report showed U.S. housing starts rose less than forecast last month and investors awaited signs from the Federal Reserve on whether it will begin to pare stimulus measures immediately.
The Federal Reserve may introduce a third round of quantitative easing early next year as U.S. inflation cools, Alain Bokobza, head of asset-allocation strategy at Societe Generale, said at a press conference in Beijing today.
Emerging-market stocks dropped for a third day, sending the benchmark index to its lowest level in more than three weeks, as concern deepened that the global economic slowdown will curb corporate earnings.
European companies are reporting the biggest profit rise in six years as the region’s economic expansion overcomes the sovereign debt crisis, making stock strategists almost twice as bullish as their U.S. counterparts.
Money managers will increase direct lending to Europe’s companies to benefit from higher yields and better guarantees as the region’s banks pull back from keeping debt on their balance sheets, according to Societe Generale SA.