European Airlines, Banks Fall

Mayank Mehta
19 Apr, 2010
New York City

European markets closed lower after transportation stocks and banks led the decliners. Banks fell after the UK and German regulators are seeking more information from Goldman Sachs. Airline industry association raised its estimate of daily loss to $300 million.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower after transportation stocks and banks led the decliners. Banks fell after the UK and German regulators are seeking more information from Goldman Sachs. Airline industry association raised its estimate of daily loss to $300 million.[/R]

European markets closed lower after airlines and airport operators and banks led the decliners.

Worldwide air traffic has been disrupted for the third day in a row after European carriers were forced to cancel flights. The ash cloud after the eruption of volcano in Iceland has forced the cancellation of 81,000 flights disrupting trans-Atlantic traffic.

Airlines are pushing for the easing of restriction after the industry association lifted a daily loss to $300 million from $200 million. The London Book Fair is expected to draw only 40% of the speakers and international visitors and the World Retail Congress rescheduled its gathering to October.

The UN Cocoa Conference in Geneva and the Cobalt Conference 2010 in Cape Town, South Africa are few of the large events that have been postponed till the later months in the year.

Lufthansa AG, AirFrance-KLM Group, Fraport AG, BAA Ltd and Ferrovia SA declined between 2% and 4%.

The Greek finance ministry said that its talks with the EU and IMF will be delayed till April 21 as travel restrictions affect officials to meet.

Seasonally adjusted construction activities in February decreased 3.3% in euro area and 2.9% in the EU27 compared to a month ago. In January 2009, activities in EU 27 area and EU 27 fell by 0.9% and by 1.1% respectively.

In London FTSE 100 Index closed lower 16.05 or 0.28% to 5,727.91, in Paris CAC 40 Index decreased 16.16 or 0.41% to close at 3,970.47, in Frankfurt DAX index lower 18.46 or 0.30% to close at 6,162.44. In Zurich trading SMI decreased 90.01 or 1.31% to close at 6,803.68.

Gainers & Losers

Air France-KLM Group, the largest airline in Europe decreased 3.5% to €11.99 after most airports in northern Europe remain closed for the third day in a row. Industry association estimated $200 million daily loss as ash cloud hangs over the region and the European traffic controllers are not ready to permit flights in and out of the airspace.

BioAlliance Pharma SA gained 5.8% to €6.35 after the pharmaceutical company won U.S. marketing approval for its oral anti-fungal tablet miconazole Lauriad, making it the first treatment for the French biotechnology company to reach the world''s biggest drug market.

BNP Paribas SA the bank fell 1.4% to €54.58.

Deutsche Lufthansa AG fell 5.1% to €12.09 after the airline canceled all flights today till 8 pm local time. The airlines are pressing for quick resumption of air traffic but regulators are taking a cautious approach.

Faurecia SA increased 3.4% to €16.53 after the maker of automotive interiors said first-quarter sales grew 60% to €3.2 billion from €2.01 billion a year ago.

Groupe Eurotunnel SA gained 3.5% to €7.74 after passengers traffic increased as most flights in the airports remain closed for the third day in a row.

Havas SA the owner of the Euro RSCG Worldwide advertising agency rose 0.4% to €3.93.

Ipsen SA added 1.8% to €37.88 after the drugmaker was upgraded to “outperform” from “neutral” at Exane BNP Paribas.

Kuehne & Nagel International AG the transport and logistics operator said first quarter revenues rose 7.3% to CHF4.6 billion from CHF4.3 billion a year ago. Net profit for the quarter rose 2% to CHF131 million compared to net profit of CHF128 million a year ago.

MAN SE, the engineering group rose 0.4% to €66.74.

SKF AB the supplier of bearings, seals and lubrication systems said first quarter revenues fell 3% to SEK14.4 billion from SEK14.8 billion a year ago. Pre-tax profit for the quarter rose 183% to SEK1.5 billion compared to pre-tax profit of SEK531 million a year ago.

Siemens AG rose 0.4% to €71.47.

STMicroelectronics N.V rose 1.1% to €7.61 after the chipmaker is expected to increase annual dividend.

Stallergenes SA rose 0.3% to €63.00 after the company today announced the first results of a phase III clinical trial conducted in the USA on its sublingual grass pollen immunotherapy tablet.

DAX Index Movers

Deutsche Lufthansa AG led the decliners in the DAX index of 3.19%, followed by Henkel AG of 1.89%, in ThyssenKrupp AG of 1.52, in Deutsche Bank AG of 1.42%, and in Commerzbank AG of 1.27%.

Siemens AG led gainers in the DAX index with a rise of 1.40%, followed by increase in E.ON AG of 0.65%, in MAN SE of 0.45%, in Adidas AG of 0.38%, and inBayer AG of 0.38%.

CAC-40 Index Movers

AXA led the decliners in the CAC-40 index of 1.73%, in Michelin SCA of 1.60%, in ArcelorMittal of 1.58%, in Veolia Environnement of 1.57% and in Carrefour SA of 1.42%.

Dexia SA gainers in the CAC-40 index with a rise of 2.09%, in Cap Gemini SA of 1.49%, in STMicroelectronics N.V. of 0.84% in L''Oreal SA of 0.69% and in Technip of 0.59%.