European Indexes Lower; Henkel, Hannover Re Up, Holcim, Natixis Down

Devan Biswas
10 Nov, 2010
New York City

European stocks closed lower as the euro advanced. Mixed earnings kept indexes trading lower. Holcim Ltd and Natixis SA fell on weaker than expected earnings. Henkel SA and Hannover Re closed higher.

[R]5:00 PM Frankfurt – European stocks closed lower as the euro advanced. Mixed earnings kept indexes trading lower. Holcim Ltd and Natixis SA fell on weaker than expected earnings. Henkel SA and Hannover Re closed higher.[/R]

Markets in Europe traded lower and in Asia China region index fell but indexes in Japan closed at four-month high.

European markets in the early afternoon traded lower as the dollar declined and commodities prices hovered near their recent highs. Gold and silver fell from the record prices yesterday crude oil declined a fraction but copper and sugar traded higher.

World investors are increasingly convinced that nations will diverge in their approach to the rising imbalances in global financial flows. China and Germany are increasingly united in criticizing the latest $600 billion stimulus from the U.S. Federal Reserve and emerging markets are worried that the new supply will stock inflation.

Stock Movers

Resource stocks and banks declined in trading in the region. Earnings surprise also affected the sentiment after Holcim Ltd, UniCredit SpA and Natixis SA reported lower than expected.

Hannover Re increased more than 3% to 37.81 euros after the reinsurer lifted full year earnings. Quarterly net increased 66%.

The Germany based reinsurance company reported forth quarter net premium soared 17.3% to €2,651.5 million from €2,260.4 million a year ago period. Net investment income in the quarter increased 14.0% to €320.8 million or €2.25 per share compared to €281.3 million or €1.35 per share same quarter a year ago period.

Henkel AG increased more than 8% after the consumer products maker in Germany reported third quarter net soared 96% to 337 million euros.

The home care product maker reported third quarter revenue increased 13.7% to €3,961 million from €3,485 million in the same quarter last year. Net income in the quarter surged 90.6% to €343 million or €0.78 cents per share, compared to €180 million or €0.39 per share in the prior-year quarter.

Holcim Ltd declined more than 1% after quarterly earnings declined to Sfr544 from Sfr673 million in the period a year ago.

The cement and concrete maker said third quarter revenue decreased 0.5% to Sfr5,666 million from Sfr5,692 million a year ago period. Net income in the quarter plunged 22.5% to Sfr612 million compared to Sfr790 million in the same quarter a prior year period.

Mediaset SpA dropped more than 5% after the Italy based media conglomerate reported a third quarter loss on the one time charges arising from investments.

Natixis SA dropped more than 8% after third quarter net plunged 16% to 305 million euros and revenues declined on the lower valuations of debt securities.

The France based financial and investment bank reported third quarter net revenue decreased 4% to €1,427 million from €1,481 million a year ago. Net income in the quarter declined 16% to €305 million compared to €362 million in the same quarter a year ago.

UniCredit SpA dropped 18% to 1.81 euros after it third quarter net declined 15% to 334 million euros.