European Indexes Up; Andritz Net Surges

Arthi Gupta
09 Aug, 2010
New York City

The European indexes trade higher after a rise in resource and bank stocks. Fitch affirms Romania''s debt with a stable outlook. Euro-zone investor confidence soars in August. German trade surplus and export growth rises in June. Spanish corporate bankruptcies decline in the second quarter.

[R]4:00 PM Frankfurt – The European indexes trade higher after a rise in resource and bank stocks. Fitch affirms Romania''s debt with a stable outlook. Euro-zone investor confidence soars in August. German trade surplus and export growth rises in June. Spanish corporate bankruptcies decline in the second quarter.[/R]

U.S. and Asian markets advanced. Portugal trade deficit widens in the second quarter. Greek industrial production slackens in June.

In Paris CAC 40 Index increased 54.99 or 1.48% to close at 3,771.04 and in Frankfurt DAX Index edged higher 82.38 or 1.32% to close at 6,342.01.

Rating agency Fitch today affirmed Romania''s long-term foreign and local currency issuer default ratings at BB+ and BBB-, respectively. The outlook on these ratings was awarded “stable.” Romania''s country ceiling and short-term foreign currency debt were affirmed at BBB and B respectively.

Fitch estimates Romania''s foreign liquid assets to cover 150% of maturing external debt in 2010. Additionally, the rating agency said the main risk to sovereign creditworthiness has therefore shifted to public finances from external finances. Fitch said it believes the government consolidated its finances sufficiently to rein the deficit in to 7.3% of GDP for 2010.

Euro-zone investor confidence improved more than expected in August to its highest level since December 2007.

The investor confidence index rose to 8.5 in August from minus 1.3 in July, according to a survey published by the research group Sentix today. The survey was conducted between August 5 and 7 with 787 investors as participants.

German trade surplus rose to €14.1 billion in June from €9.8 billion recorded in May, according to the Federal Statistic Office report released today.

German exports rose 3.8% in June compared to a downwardly revised 7.9% increase in May, according to a report from the Federal Statistics Office released today. Imports edged higher 1.9% in June as against the 13.7% growth in May.

Spanish corporate bankruptcies fell 13.7% in the second quarter from the same period of last year, according to data released by the statistics office INE today. Within the total corporate bankruptcies, the share of companies with turnover less than €2 million was 63.6%.

The total number of debtors processed in the second quarter decreased 14.2% to 1,511 from the prior year.

Portugal''s trade deficit widened to €4.99 billion in the second quarter from €4.55 billion recorded during the same period of last year, according to a report released by the Statistics Portugal today.

In the second quarter, exports climbed 15.4% year-on-year to €8.98 billion from €7.79 billion last year. At the same time, imports rose 13.2% to €13.97 billion from €12.34 billion a year ago.

Greek industrial output declined in June, but at a slower pace compared to the same month a year ago, according to official data published today. The Hellenic Statistics Authority said industrial production dropped 4.5% in June 2010 compared to 10.3% fall in June 2009.

In the first six months of the year, total production contracted 5.8% compared to the same period a year ago.

Gainers & Losers

Andritz AG advanced 3.5% to €49.9 after the Austrian high-technology machinery maker reported second quarter sales rose 5.9% to €829.9 million. Net profit in the quarter surged 380% to €38.4 million from €8 million a year earlier.

BP plc edged higher 0.41% to 41.50 pence after the oil and gas explorer estimates permanent sealing of leaking well by August 15.

Eni S.p.A. rose 0.44% to €43.82 after the Italian energy group sold its subsidiary Padana Energia to Gas Plus SpA for €175 million.

GDF Suez SA increased 1.70% to €26.64 after the French power giant is likely to announce a potential deal with its British rival International Power on Aug 10, the Sunday Times reported.