France and China in

Devan Biswas
05 Nov, 2010
New York City

European markets closed higher. France and China signed 15 billion euros agreement to sell uranium, aircrafts and energy projects. German factory orders declined 4% in September. Resource stocks closed higher.

[R]6:00 PM Frankfurt – European markets closed higher. France and China signed 15 billion euros agreement to sell uranium, aircrafts and energy projects. German factory orders declined 4% in September. Resource stocks closed higher.[/R]

FTSE 100 index rose 0.2% to 5,875.35, CAC 40 index gained 0.17% and the DAX index added 0.2%. FTSE index increased 2.6% in the week.

France and China signed 16 billion euros deals that will provide energy services, industrial equipment and aircrafts to China.

Airbus SAS will sell 102 aircrafts to Air China, China Eastern Airline and China Southern Airlines and China Aviation Supplies Holding Co.

Areva SA signed 10-year contract to supply 20,000 tons of uranium to China and Total SA will help China government controlled companies to covert coal to synthetic fuel.

German factory orders declined September 4% from August when they rose 3.5% according to the Economy Ministry in Berlin. Seasonally and calendar adjusted surged 14% from a year ago.

Food prices index in UK rose 9.8% in October from a year ago, and annual input price increase declined to 8% from 8.7%, according to the latest data from the Office of National Statistics. Annual food prices increased 2.1% in October from September.

U.S. payrolls increased 151,000 in October after dropping the revised 41,000 in the previous month, according to the latest data from the U.S. Labor Department. Unemployment in the month hovered at 9.6%

The October employment report is the first after the completion of census conducted every ten years and the federal employment declined to 6,000 from the peak of 586,000 in May.

Stock Movers

HSBC Holding Plc declined 1.4% to 683 pence after the bank said third quarter net income was “well ahead” of last year. The profit in the period increased 121% to £6.8 billion on the lower loan losses in the U.S.

The bank also said its staff and payroll and bonus increased 39% in global banking and markets in the first half to £1.5 billion from the second half last year.

HeidelbergCement AG gained 2.2% to 41.85 euros and the company said that the key investor Ludwig Merckel controlled stake reached 25.11%, above the threshold holding. The 25% limit requires the investor to disclose their intentions. Merckel said he has no intention to acquire any more stake in the company.

Mail.ru Group Ltd surged 28% to 35.70 pence on its first day of trading in London after the company successfully raised $910 million.

Praktiker AG, the Germany based home improvement retailer soared nearly 6% on media speculation that the company may be acquired by the U.S. based Home Depot Inc.

Rolls-Royce Group Plc dropped 3.3% after Qantas Airway Ltd grounded Airbus A380 planes after a mid-air engine explosion.

Royal Bank of Scotland Group Plc decreased 3.1% to 45.51 pence after the bank third quarter net loss declined to 36% to 1.15 billion pounds. The bank booked charges of 825 million to the government’s asset protection scheme and said that it will pay £250 million in 2011.

Core profit in the core business increased 10% from the second quarter.

Scor SA increased 3% to 18.25 euros after the France based reinsurer said third quarter income increased 18% to 111 million euros.

Singulus Technologies dropped as much as 2.2% after the electronic equipment maker said that revenues for the nine month period will fall short of the 81 million euros target.

Steel makers in Germany and France scaled higher after resource stocks gained. ThyssenKrupp AG increased 1.1% and Arcelor Mittal closed up 2.7%.