German Retail Sales Fall, Euro-zone PMI at Low

Arthi Gupta
01 Sep, 2010
New York City

European stocks rose after euro-zone manufacturing fell to six-month low in August. German retail sales drop in July and manufacturing growth declined in August. Greek manufacturing slid in August. French manufacturing index surged.

[R]4:00 PM Frankfurt – European stocks rose after euro-zone manufacturing fell to six-month low in August. German retail sales drop in July and manufacturing growth declined in August. Greek manufacturing slid in August. French manufacturing index surged.[/R]

Hungary''s imports and exports increased in June and Italian manufacturing slackened in August.

In Paris CAC 40 Index increased 65.83 or 1.89% to close at 3,556.62 and in Frankfurt DAX Index edged higher 68.79 or 1.16% to close at 5,994.01.

Euro-zone manufacturing activity fell to a six-month low in August, according to a survey data published today.

Markit Economics said the manufacturing purchasing managers'' index declined to a seasonally adjusted 55.1 in August compared to 56.7 in July.

German retail sales declined for the second consecutive month in July, according to official data released today.

German retail sales fell 0.3% in real terms in July after falling 0.3% in June, according to the Federal Statistics Office report released today. From a year ago, retail sales rose modestly 0.8% in July as against the 4.7% rise in June.

Revenue from food and tobacco was 0.4% lower in July from a year earlier. Sales at supermarkets fell 0.4%, while those at other outlets were down 0.8%.

Sales of non-food items rose 1.9%, led by furnishings and household appliances, up 4.3%. Cosmetics and pharmaceuticals saw an increase of 2.8%.

Germany''s headline BME manufacturing PMI slid to 58.2 in August from 61.2 In July, final figures from the Markit Economics showed today. The reading was unchanged from the flash PMI reading published earlier.

Markit said output and new order growth in the German manufacturing sector eased markedly in August.

French manufacturing activity rose at a faster than expected pace in August with incoming new orders rising briskly.

Markit Economics said the manufacturing purchasing managers'' index rose to a seasonally adjusted 55.1 in August from 53.9 in July.

Greece''s manufacturing sector shrunk at a faster pace in August as output and new orders fell at steeper rates and job reduction increased.

The Purchasing Managers'' Index fell to 43 from 45.3 in July, Markit Economics said today.

Hungary’s exports increased 24.5% year-on-year in June and imports rose 20.9% year-on-year in June, according to final data released from the Hungarian Statistics Office today.

The trade surplus in June was €563.6 million as against the trade surplus of €398.4 million in May.

Italy''s manufacturing sector grew at the weakest pace since February due to slower growth in output and new orders as well as a resumption of job shedding, according to survey data published today.

The seasonally adjusted Markit/ADACI Purchasing Managers'' Index dropped to 52.8 in August from 54.4 in July.

The minutes from the August Fed meeting revealed that a number of Fed policy makers called for further stimulus should the economy show additional weakness but offered no additional insight into the direction of the economy.

China reported that manufacturing activity rose slightly in August, ending a two-month contraction. Markit Economics said the HSBC manufacturing purchasing managers'' index was at a seasonally adjusted 51.9, up from 49.4 in July.

Gainers & Losers

Bayerische Motoren Werke AG gained 0.82% to €42.01 after the automobile manufacturer is set to replace Aegon NV in the Euro Stoxx 50 Index effective September 20.

Bourbon SA''s slumped 3.85% to €28.95 after the maritime transporter first-half net profit nearly halved to €41 million on sluggish revenue increases and a rise in operational costs because of impairment charges related to the sale of 16 bulk carriers.

Bouygues S.A. declined 0.53% to €31.86 after the France-based construction company reported a 10% fall in second quarter net profit to €351 million from €388 million, but said it is well-placed to grasp opportunities for growth in its markets.

Danaos Corp. plunged 3.42% to $3.95 after the international owner of containerships reported a net loss for the second quarter of $14.67 million or 27 cents per diluted share, compared to net income of $15.85 million or 29 cents per share in the year-ago quarter. Operating revenue for the quarter increased 7.3% to $84.9 million from $79.1 million in the prior-year quarter.

Vinci S.A. surged 3.45% to €35.82 after the builder reported first-half net profit rose a modest 1.9% to €703 million from €690 million.

Vivendi S.A soared 4.07% to €19.16 after the French media group reported second-quarter revenues rose 6.2% to €7.06 billion from €6.65 billion in the year-ago quarter. Net earnings in the quarter slipped 3.7% to €669 million or 54 euro cents per share as against net earnings of €695 million or 58 euro cents per share in the prior-year quarter.