Output, Earnings Lift European Markets

Mayank Mehta
14 Apr, 2010
New York City

European markets closed higher after earnings momentum and an increase in industrial production lifted the sentiment. European chipmakers Infineon Technologies AG and STMicroelectronics NV traded higher after Intel Corp estimated higher worldwide demand.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after earnings momentum and an increase in industrial production lifted the sentiment. European chipmakers Infineon Technologies AG and STMicroelectronics NV traded higher after Intel Corp estimated higher worldwide demand.[/R]

European markets closed higher after chipmakers gained on higher earnings from Intel Corp and industrial production in the euro zone advanced more than expected in February.

Industrial output in 16-nations euro zone increased by 0.9% in February from previous month and rose by 4.1% from a year ago.

In London FTSE 100 Index closed higher 34.59 or 0.60% to 5,796.25, in Paris CAC 40 Index increased 25.71 or 0.64% to close at 4,057.70, in Frankfurt DAX index higher 47.57 or 0.76% to close at 6,278.40. In Zurich trading SMI increased 30.73 or 0.45% to close at 6,916.59.

The ASE Index in Athens trading declined 1.4% and fell 3.6% in the two days of trading. Volatile banks led the decliners. National Bank of Greece SA declined 4% and EFG Eurobank Ergasias SA dropped 5.2%.

Greek stocks and banks were under pressure after hedge fund manager George Soros commented at a gathering in London that Greece still faces default probability on the “expensive” borrowing cost of the EU-IMF led bailout.

Gainers & Losers

ASML Holding N.V added 0.8% to €26.40 after the chip equipment maker said first quarter revenues rose 304% to €741.8 million from €183.6 million a year ago. Net profit for the quarter was €107.3 million or €0.25 per diluted share compared to net loss of €117.2 million or €0.27 per share a year ago.

Atos Origin SA the company that provides information technology services added 2.7% to €38.81.

BMW AG fell 0.6% to €35.12 after the maker of luxury cars was downgraded to “neutral” from “buy” at Bank of America Merrill Lynch Global Research.

Christian Dior SA the luxury fashion maker advanced 1.1% to €82.72.

Deutsche Postbank AG increased 6.4% to €25.45.

Electricite de France SA rose 0.9% to €41.94 after the power generator and The Renault-Nissan Alliance Tuesday confirmed an experimental electric vehicle project in Yvelines, France, with the financial support by the French Environmental and Energy Management Agency.

Fleury Michon SA added 1.3% to €38.50 after the food maker said 2009 revenues rose 6% to €532.0 million from €502.7 million a year ago. Net profit for the year rose 174% to €14.8 million compared to net profit of €5.4 million a year ago.

Gerresheimer AG gained 3% to €25.20 after the supplier of glass and plastic products said first quarter revenues fell 5.3% to €224.8 million from €237.3 million a year ago. Net profit for the quarter was €2.4 million or €0.06 per diluted share compared to net loss of €1.1 million or €0.05 per share a year ago.

PSA Peugeot Citroen S.A fell 1.1% to €22.23 after the carmaker was downgraded to “neutral” from “buy” at Bank of America Merrill Lynch Global Research.

Schneider Electric SA rose 0.1% to €86.64 after the electric equipment company said it is buying SCADAgroup, an Australia-based provider of remote measurement products, for an enterprise value of €140 million.

Scania AB the manufacturer of heavy trucks and buses said first quarter sales were SEK16.5 billion. Operating income for the quarter was SEK2.13 billion.

Siemens AG dropped 0.9% to €72.87 after the engineering company was downgraded to “neutral” from “buy” at Bank of America Merrill Lynch.

STMicroelectronics N.V the chipmaker climbed 2.6% to €7.73.

Vilmorin & Cie SA rose 0.01% to €74.71 after the seed producer announced that it has proposed share capital increase with maintenance of preferential subscription rights for a total amount of €200 million.

DAX Index Movers

Metro AG led the decliners in the DAX index of 1.61%, followed by Bayer AG of 0.63%, in Siemens AG of 0.58, in Deutsche Telekom AG of 0.54%, and in Fresenius Medical Care AG & Co. KGaA of 0.53%.

Volkswagen AG led gainers in the DAX index with a rise of 3.24%, followed by increase in Deutsche Bank AG of 2.99%, in Commerzbank AG of 2.47%, in Diamler AG of 2.47%, and in Infineon Technologies AG of 2.17%.

CAC-40 Index Movers

Essilor International SA led the decliners in the CAC-40 index of 1.03%, in PSA Peugeot Citroen S.A of 1.02%, in Pernod Ricard SA of 0.93%, in Accor SA of 0.67% and in Renault SA of 0.52%.

Cap Gemini SA gainers in the CAC-40 index with a rise of 5.73%, in Alcatel Lucent of 3.20%, in Bouygues SA of 2.83%, in STMicroelectronics N.V. of 2.67% and in Lagardere SCA of 2.43%.