European stocks declined from a five-year high as investors weighed corporate earnings and China’s pledge to boost the role of markets in economic growth.

China’s top policy makers affirmed that markets must play a decisive role in the allocation of economic resources, as the central committee of the Communist Party of China concluded its first plenary session under the presidency of Xi Jinping, the official Xinhua News Agency reported.

Today’s comments build on China’s pledge to reduce the role of the State in economic activity and boost private participation as the world’s second-largest economy tries to replace debt-driven growth with consumption-led expansion.

Xinhua said last week that the plenum would be a “watershed as drastic economic policies will be unveiled,” including giving more scope to market forces and an overhaul of the household registration system that limits labor mobility.

National benchmark indexes fell in 16 of the 18 western European markets. France’s CAC 40 lost 0.6 percent and Germany’s DAX slid 0.3 percent. The U.K.’s FTSE 100 slipped less than 0.1 percent.

Norsk Hydro retreated 5.5 percent to 25.49 kroner. Vale, the world’s biggest iron-ore exporter, sold its stake in the company for $1.8 billion. Vale sold 407.1 million shares for 25 kroner each. If an over-allotment option of 40.7 million shares is exercised in full, Vale will have disposed of its entire 22 percent stake for 11.2 billion kroner ($1.82 billion).

A gauge of mining companies posted the worst performance of the 19 industry groups in the Stoxx 600. Anglo American Plc slid 2.3 percent to 1,440.5 pence and Fresnillo Plc declined 3.9 percent to 915.5 pence. Polymetal International Plc slid 5.5 percent to 536.5 pence.

Infineon Technologies lost 5.6 percent to 6.88 euros, the biggest slide since June, after forecasting a slide in profitability for its first quarter because of a revenue drop at its power-management chip division. Earnings before interest and taxes will amount to 8 percent to 10 percent of sales in the three months through December, the company said.

Swiss Life gained 5.1 percent to 189 Swiss francs as the country’s biggest life insurer said CEO Bruno Pfister will resign. Chief Investment Officer Patrick Frost will succeed Pfister on July 1. The company also said third-quarter premium income rose 8 percent to 3.29 billion francs ($3.57 billion).

West Texas Intermediate fell for the first time in three days amid forecasts that U.S. crude inventories rose to the most since June.

Prices dropped as much as 0.9 percent as stockpiles in the world’s biggest oil-consuming country climbed for an eighth week. Inventories added 650,000 barrels through Nov. 8, according to a Bloomberg survey before an Energy Information Administration report on Nov. 14. The U.S. will become the largest oil producer by 2015, the International Energy Agency said today. Gasoline prices advanced for a third day.

WTI for December delivery dropped 60 cents, or 0.6 percent, to $94.54 a barrel at 11:08 a.m. on the New York Mercantile Exchange. It advanced to $95.14 yesterday, the highest settlement since Oct. 31. The volume of all futures traded was 12 percent below the 100-day average.

Brent for December settlement rose 30 cents, or 0.3 percent, to $106.70 a barrel on the London-based ICE Futures Europe exchange. The volume was 18 percent above the 100-day average. The European benchmark crude’s premium over WTI widened to $12.16 from $11.26 yesterday.

The price of gold fell to 3.5 -week low below $ 1,290 an ounce, as investors are uncertain in timing reduce the incentives the Fed , and physical demand is not high enough .

Gold fell nearly 3 percent in the last three sessions , as the high levels of employment in the U.S. increased concerns that the Fed will soon start buying bonds to reduce the amount to $ 85 billion a month.

If prices fall below $ 1,300 does not help attract buyers in the physical market in Asia , as they are waiting for further decline. According to dealers , the buyers return to the market if the price is closer to $ 1,200 .

Bank BNP Paribas raised its gold price forecast to $ 1,415 an ounce by the end of this year , but lowered the forecast average price in 2014 to $ 1,095 .

The cost of the December gold futures on COMEX today dropped to $ 1274.00 per ounce.

U.S. stocks retreated as investors assessed corporate earnings and speculated on the timing of any reduction to Federal Reserve stimulus.

Global Stocks:

Nikkei 14,588.68 +318.84 +2.23%

Hang Seng 22,901.41 -168.44   -0.73%

Shanghai Composite 2,126.77 +17.30   +0.82%

FTSE 6,706.42 -21.95   -0.33%

CAC 4,273.28 -16.86   -0.39%

DAX 9,084.09 -23.77   -0.26 %

Nymex WTI  $94.87 (-0.06%).

Gold $1281.00 (-0.01%).

USD/JPY Y98.00, Y98.70, Y99.00, Y99.25(L), Y99.35, Y100.00, Y100.25

EUR/USD $1.3315, $1.3350(L), $1.3395, $1.3400, $1.3450

GBP/USD $1.5920, $1.5950, $1.6160

EUR/GBP stg0.8360

AUD/USD $0.9350, $0.9380, $0.9385, $.9400

USD/CAD C$1.0400, C$1.0450, C$1.0475, C$1.0500, C$1.0525

CAD/JPY Y93.55

Data:

00:01 UK House Price Balance of RICS October Revised to 53% 54% 59 % 57 %

00:30 Australia Index of business sentiment from the National Australia Bank on May 12 Октябрь

05:00 Japan Consumer Confidence Index in October 45.4 46.3 41.2

6:00 Japan Change in orders for equipment (preliminary data), y / y in October -6.3 % +8.4 %

7:00 Germany CPI m / m (final ) October -0.2 % -0.2 % -0.3 %

7:00 Germany CPI Y / Y (final ) October +1.2 % +1.2 % +1.2 %

09:30 UK Retail Price Index m / m in October +0.4 % +0.5 % +0.0 %

09:30 UK Retail Price Index y / y in October +3.2 % +3.0 % +2.7 %

09:30 UK retail price index , the base value , y / y in October +3.2 % +3.1 % +2.7 %

09:30 UK Producer Price Index m / m in October -1.2 % -0.3 % -0.6 %

09:30 UK Producer Price Index y / y in October +1.1 % +0.3 % -0.3 %

09:30 UK Producer Price Index (m / m ) October -0.1 % 0.0 % -0.3 %

09:30 UK Producer Price Index y / y in October +1.2 % +1.0 % +0.8 %

09:30 UK Consumer Price Index m / m in October +0.4 % +0.4 % +0.1 %

09:30 UK CPI y / y in October +2.7 % +2.5 % +2.2 %

09:30 UK Consumer Price Index, the base value , y / y in October +2.2 % +2.0 % +1.7 %

10:00 Eurozone ECB board member Jens Weidmann

The pound fell markedly against the U.S. dollar, which has been associated with the release of weak data on Britain. The Office for National Statistics said that the annual inflation rate in the UK in October fell to its lowest level in more than a year. Note that this reduction should help convince the Bank of England did not change interest rates until the unemployment rate will not fall to the level of 7.0%.

The report showed that the results of last month 's annual inflation fell to 2.2 %, compared with 2.7 % in September. We add that the annual growth rate was the lowest since September 2009 . According to the median forecast of economists , the index was up 2.5 percent.

Basic annual inflation, which excludes alcohol , food, tobacco and energy prices , fell to 1.7 percent from 2.2 percent in September , which was the lowest since September 2009 . Economists forecast that growth will be 2 percent. In addition , the data showed that, compared with the previous month in October, consumer prices rose by 0.1 percent, which was less than expected by many experts - at the level of 0.4 .

The Office for National Statistics also reported that in October, the retail price inflation fell to 2.6 per cent year on year from 3.2 percent in September. It was the lowest level since September 2012 . Retail prices excluding mortgage interest payments rose by 2.7 per cent per annum , compared with 3.2 percent the previous month.

A separate report today showed that in October prices paid producers in the UK fell by 0.3 percent in September , showing the strongest decline since June 2012 . Compared with the previous year prices rose by 0.8 percent , registering the smallest annual increase since October 2009 .

The dollar strengthened to a two-month high against the yen amid signs that the world's largest economy is gaining momentum. Note that many market participants are waiting for release of the report by the United States. According to experts, the index of economic activity from the Federal Reserve Bank of Chicago, which is based on 85 economic indicators, rose to 0.15 points in September , compared with August. If this forecast is confirmed, it will be the highest value of this index since February of this year.

Meanwhile, add the pressure on the yen have expectations publication of the report on GDP growth in the third quarter , which will be presented tomorrow. According to the forecasts , economic growth in Japan slowed to 0.4 percent in the third quarter, compared with growth of 0.9 percent in the previous three months.

The Australian dollar fell against the U.S. dollar, which was caused by the publication of a weak report on Australia . Data from the National Australia Bank revealed last month that business confidence in Australia decreased , and the general conditions also remained weak, which supports the view of the central bank about the fragility of the economic recovery.

Business confidence fell to five points from 12 points in September , data showed a monthly survey of the National Bank of Australia . Business conditions remained weak - at -4 points .

Last week the central bank said it is too early to speak of a " stable" improvement in mood of households and businesses. It also lowered the forecast for economic growth for 2014

The central bank forecasts that gross domestic product will grow by about 3.2 percent for the year to December 2014. The previous forecast , which was published three months ago, the expected growth in the 2.5-3.5 percent. The outlook for inflation remains within the target level of 2 to 3 percent.

"Companies are probably overestimated their expectations regarding future performance , taking into account the long weakness in the real world of business ," - said Alan Oster, chief economist at NAB. - « However, confidence remains higher than the average for the previous three years."

EUR / USD: during the European session, the pair fell to $ 1.3358 , but then rose to $ 1.3430

GBP / USD: during the European session, the pair fell to $ 1.5851 , and then went back up to $ 1.5905

USD / JPY: during the European session, the pair rose to Y99.80

At 13:30 GMT the United States will publish the index of economic activity from the Federal Reserve Bank of Chicago in September. At 20:00 GMT New Zealand will release a report on the financial stability of the RBNZ . At 23:30 GMT Australia will present the consumer confidence index from Westpac in November. At 23:50 GMT Japan will report on changes in the volume of orders for machinery and equipment in September.

EUR/USD

Offers $1.3500, $1.3450, $1.3438, $1.3420

Bids $1.3351, $1.3320-00, $1.3290, $1.3277

GBP/USD

Offers $1.6050, $1.6000, $1.5950/60, $1.5920/25, $1.5900/05

Bids $1.5850, $1.5840, $1.5820, $1.5800

AUD/USD

Offers $0.9500, $0.9450, $0.9420, $0.9400, $0.9365/70

Bids $0.9320, $0.9300, $0.9250, $0.9200

EUR/JPY

Offers Y135.00, Y134.50, Y134.20, Y134.00, Y133.62

Bids Y133.10/00, Y132.71, Y132.50, Y132.49, Y132.21/18

USD/JPY

Offers Y100.61, Y100.50, Y100.20, Y100.00, Y99.80

Bids Y99.20, Y99.00, Y98.80, Y98.50

EUR/GBP

Offers stg0.8600/05, stg0.8575/85, stg0.8520/30, stg0.8500, stg0.8480

Bids stg0.8377, stg0.8325/20, stg0.8300, stg0.8285

European stocks declined from a five-year high as investors weighed corporate earnings and China’s pledge to boost the role of markets in economic growth. U.S. index futures dropped, while Asian shares advanced.

The Stoxx Europe 600 Index fell 0.5 percent to 321.84 at 11:18 a.m. in London. The gauge has rallied for five straight weeks as the European Central Bank lowered its key interest rate and the Federal Reserve maintained bond purchases.

China’s top policy makers affirmed that markets must play a decisive role in the allocation of economic resources, as the central committee of the Communist Party of China concluded its first plenary session under the presidency of Xi Jinping, the official Xinhua News Agency reported.

Today’s comments build on China’s pledge to reduce the role of the State in economic activity and boost private participation as the world’s second-largest economy tries to replace debt-driven growth with consumption-led expansion.

Xinhua said last week that the plenum would be a “watershed as drastic economic policies will be unveiled,” including giving more scope to market forces and an overhaul of the household registration system that limits labor mobility.

Norsk Hydro (NHY) retreated 5.6 percent to 25.44 kroner. Vale, the world’s biggest iron-ore exporter, sold its stake in the company for $1.8 billion. Vale sold 407.1 million shares for 25 kroner each. If an over-allotment option of 40.7 million shares is exercised in full, Vale will have disposed of its entire 22 percent stake for 11.2 billion kroner ($1.82 billion).

Infineon Technologies lost 3.9 percent to 7.01 euros after forecasting a slide in profitability for its first quarter because of a revenue drop at its power-management chip division. Earnings before interest and taxes will amount to 8 percent to 10 percent of sales in the three months through December, the company said.

Swiss Life gained 5.9 percent to 190.50 Swiss francs as the country’s biggest life insurer said CEO Bruno Pfister will resign. Patrick Frost will succeed Pfister on July 1. The company also said third-quarter premium income rose 8 percent to 3.29 billion francs ($3.57 billion).

FTSE 100  6,712.81 -15.56 -0.23%

CAC 40 4,277.51 -12.63 -0.29%

DAX 9,084.69 -23.17 -0.25%

USD/JPY Y98.00, Y98.70, Y99.00, Y99.25(L), Y99.35, Y100.00, Y100.25

EUR/USD $1.3315, $1.3350(L), $1.3395, $1.3400, $1.3450

GBP/USD $1.5920, $1.5950, $1.6160

EUR/GBP stg0.8360

AUD/USD $0.9350, $0.9380, $0.9385, $.9400

USD/CAD C$1.0400, C$1.0450, C$1.0475, C$1.0500, C$1.0525

CAD/JPY Y93.55

Asian stocks rose, with the regional benchmark index poised to gain for a second day, before Chinese policy makers conclude a four-day meeting to map out reforms in the world’s second-largest economy.

Nikkei 225 14,588.68 +318.84 +2.23%

S&P/ASX 200 5,393.09 +5.95 +0.11%

Shanghai Composite 2,126.77 +17.30 +0.82%

KDDI Corp. jumped to the highest in 13 years after Japan’s second-largest wireless carrier held investor briefings on the outlook for earnings and revenue from users.

Incitec Pivot Ltd., an Australian fertilizer maker, surged 7.3 percent after announcing plans to deliver savings.

GCL-Poly Energy Holdings Ltd., the world’s top producer of polysilicon used in solar panels, gained 2.5 percent in Hong Kong after third-quarter sales jumped more than 500 percent.

European indices declined with mining shares and the financial sector posting the biggest losses. Lower oil prices after the OPEC report that demand will drop in 2015 and the political turmoil in Greece weighed on the indices. Weaker Industrial Output in China put further pressure on the markets. The FTSE 100 index is currently trading -1.27% quoted at 6,379.71 points, Germany's DAX 30 lost -1.37% trading at 9,727.80. France's CAC 40 declined by -1.33%, currently trading at 4,169.84 points.

Markets await Eurozone's Employment Change and industrial Production data published at 10:00 GMT and later in the session U.S. PPI and the Reuters/Michigan Consumer Sentiment Index due at 13:30 GMT and 14:55 GMT.

00:01 United Kingdom RICS House Price Balance October 53% Revised From 54% 59% 57%

00:30 Australia National Australia Bank's Business Confidence October 12 5

05:00 Japan Consumer Confidence October 45.4 46.3 41.2

06:00 Japan Prelim Machine Tool Orders, y/y October -6.3% +8.4%

The yen slid to its lowest level in seven weeks versus the dollar as the gap between yields on Japanese and U.S. 30-year bonds widened to the most since 2011 amid signs of stabilization in the world’s largest economy. The yen weakened against major peers as Asian equities advanced for a second day, damping demand for haven assets.

Gains in the dollar may be capped before Janet Yellen faces a confirmation hearing on Nov. 14 for the top job at the Federal Reserve as traders assess whether the economy is strong enough for the central bank to reduce stimulus.

The pound held five days of gains versus Australia’s dollar before the Bank of England publishes economic and inflation forecasts tomorrow. The BOE’s “growth forecast is likely to be revised higher and a faster decline in unemployment is likely to be anticipated,” Brown Brothers Harriman & Co. strategists, led by its global head Marc Chandler, wrote in a research note. “Even if the medium-term inflation forecast is lowered, the market appears to be discounting the likelihood of a rate hike late next year or arguably early 2015.”

Demand for the Aussie weakened after a private survey showed business sentiment deteriorated last month. A report from National Australia Bank Ltd. showed business confidence fell to 5 in October from 12 the previous month.

EUR / USD: during the Asian session the pair fell to $ 1.3385

GBP / USD: during the Asian session, the pair traded in the range of $ 1.5965-95

USD / JPY: during the Asian session the pair rose to Y99.60

There is a full calendar on both sides of the Atlantic, but traders say focus is still on events later in the week, when Fed Chair Bernanke and Chair-nominate Yellen speak. The European calendar gets underway at 0700GMT, when German October final HICP data will be published. At 0730GMT, the Banque de France October business survey will cross the wires. At 0825GMT, ECB Governing Council member Ewald Nowotny will deliver a speech on "Monetary Policy at the Crossroads", in Vienna, Austria. Italian October final HICP data will cross the wires at 0900GMT. Back on the Continent, at 1000GMT, ECB Governing Council member Jens Weidmann is scheduled to speak about changes in personnel of Hessen Haupverwaltung, in Frankfurt. The OECD September leading indicator will be released at 1100GMT. The day sees three late central bankers speeches. At 1600GMT, ECB Executive Board member Joerg Asmussen sits on a panel discussing unorthodox monetary policy, in London.

UK inflation data is also set for release, with October CPI and PPI due to be released at 0930 GMT. At the same time, the official ONS September House Price Index will be released. Analysts expect consumer prices to have fallen back toward the Bank of England's Monetary Policy Committee's 2% target in October. Other survey data suggest inflation will ease.

GOLD 1,283.00 -1.60 -0.12%

OIL (WTI) 95.08 0.48 0.51%

Nikkei 225 14,269.84 +183.04 +1.30%

S&P/ASX 200 5,387.14 -13.52 -0.25%

Shanghai Composite 2,109.47 +3.34 +0.16%

FTSE 100 6,728.37 +19.95 +0.30%

CAC 40 4,290.14 +29.70 +0.70%

DAX 9,107.86 +29.58 +0.33%

Dow 15,783.10 +21.32 +0.14%

Nasdaq 3,919.79 +0.56 +0.01%

S&P 500 1,771.89 +1.28 +0.07%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3406 +0,34%

GBP/USD $1,5987 -0,15%

USD/CHF Chf0,9192 -0,28%

USD/JPY Y99,15 0,00%

EUR/JPY Y132,91 +0,34%

GBP/JPY Y158,51 -0,15%

AUD/USD $0,9358 -0,24%

NZD/USD $0,8252 +0,12%

USD/CAD C$1,0474 -0,01%

00:01 United Kingdom RICS House Price Balance October 53% Revised From 54% 59% 57%

00:30 Australia National Australia Bank's Business Confidence October 12 5

05:00 Japan Consumer Confidence October 45.4 46.3 41.2

06:00 Japan Prelim Machine Tool Orders, y/y October -6.3%

07:00 Germany CPI, m/m (Finally) October -0.2% -0.2%

07:00 Germany CPI, y/y (Finally) October +1.2% +1.2%

09:30 United Kingdom Retail Price Index, m/m October +0.4% +0.5%

09:30 United Kingdom Retail prices, Y/Y October +3.2% +3.0%

09:30 United Kingdom RPI-X, Y/Y October +3.2% +3.1%

09:30 United Kingdom Producer Price Index - Input (MoM) October -1.2% -0.3%

09:30 United Kingdom Producer Price Index - Input (YoY) October +1.1% +0.3%

09:30 United Kingdom Producer Price Index - Output (MoM) October -0.1% 0.0%

09:30 United Kingdom Producer Price Index - Output (YoY) October +1.2% +1.0%

09:30 United Kingdom HICP, m/m October +0.4% +0.4%

09:30 United Kingdom HICP, Y/Y October +2.7% +2.5%

09:30 United Kingdom HICP ex EFAT, Y/Y October +2.2% +2.0%

10:00 Eurozone ECB's Jens Weidmann Speaks

13:30 U.S. Chicago Federal National Activity Index September 0.14 0.15

20:00 New Zealand RBNZ Financial Stability Report November

23:00 New Zealand RBNZ Governor Graeme Wheeler Speaks

23:30 Australia Westpac Consumer Confidence November -2.1%

23:50 Japan Core Machinery Orders September +5.4% -1.8%

23:50 Japan Core Machinery Orders, y/y September +10.3% +12.5%