European Indexes Near Two-Year Highs; German CPI Rises

Arthi Gupta
29 Dec, 2010
New York City

The European indexes rose to two-year highs after euro-zone money supply improved in November. German consumer price index climbed 1.7% in December. Spanish retail sales fell and Swedish trade surplus improved in November. Skanska agreed to sell its 50% share in PPP Highway Autopista Central.

[R]4:00 PM Frankfurt – The European indexes rose to two-year highs after euro-zone money supply improved in November. German consumer price index climbed 1.7% in December. Spanish retail sales fell and Swedish trade surplus improved in November. Skanska agreed to sell its 50% share in PPP Highway Autopista Central.[/R]

European markets closed higher after metals and energy prices hovered near highs and precious metals traded near recent record. Air travel disruption continued on the third day in New York and for the second week in Europe and stranded passengers at Moscow airport stormed the offices of Aeroflot.

In Paris CAC 40 Index gained 38.11 or 0.99% to close at 3,896.83 and in Frankfurt DAX Index edged higher 25.84 or 0.37% to close at 6,997.94.

Euro Area M3 Money Supply Rises

Euro-zone M3 money supply rose 1.9% annually in November, compared to the revised 0.9% increase in October, the European Central Bank said.

In the three months to November, M3 money supply gained 1.3% compared to the same period a year ago. M1 money supply annual growth eased to 4.6% in November from 4.9% in October.

Loans to private sector rose 2% in November compared with October''s 1.5% increase.

German CPI Rises

German consumer price index rose 1.7% on an annual basis in December, following a 1.5% increase in November, preliminary data from the Federal Statistics Office showed.

Consumer price rose 1% on a monthly basis in December, as against the 0.1% increase in November.

The flash harmonized index of consumer prices climbed 1.9% annually in December compared with 1.6% increase in November.

Spanish Retail Sales Slide

Spanish unadjusted retail sales at constant prices fell 1% on an annual basis in November following a 2.9% drop in October, data released by the statistics office showed, the fifth consecutive monthly decline in sales.

At current prices, unadjusted retail sales rose 1.9% annually in November after stagnating in October.

However, the calendar adjusted retail sales fell 1.5% in November compared with the 1.2% decline in October. Sales have been falling since July this year.

Swedish Trade Surplus Up

Swedish trade surplus on a seasonally adjusted basis rose to SEK 7.9 billion in November, from SEK 7.3 billion in October, Statistics Sweden said.

In the January to November period, the value of exports and imports increased at a rate of 14% and 17% respectively compared to the same period last year. During the period, the trade balance showed a surplus of SEK 63.9 billion.

Greek PPI Inflation Higher

Greek producer price index rose 5.9% annually in November followed by a 5% increase in October, according to the data released by the Hellenic Statistics Authority. And the index was at the highest in four months.

On a monthly basis, producer prices increased 1.3% in November compared with a 0.1% rise in October.

Swiss KOF Economic Barometer Slips

Switzerland''s KOF Institute''s economic barometer fell to 2.10 points in December from an upwardly revised 2.13 points in November, data released by the institute showed today.

Skanska Sells Share in PPP Highway Autopista Central

Skanska AB, the Sweden-based project development and construction company said it will sell its 50% share PPP highway concession Autopista Central in Santiago, Chile to Alberta Investment Management Corp., a Canadian institutional management firm for an after tax gain of around SEK 5 billion.

Skanska noted that the transaction will generate a positive net cash flow of approximately SEK 6 billion. The deal is conditioned upon approval from the bond guarantor and necessary amendments to the financing agreements.

Gainers & Losers

ACE Ltd. gained 0.37% to $62.29 after the Switzerland-based provider of insurance and reinsurance products said it closed its acquisition of Rain and Hail Insurance Service, Inc. for approximately $1.1 billion in cash.

Areva S.A. rose 1.10% to €37.70 after the nuclear group said that it had carried a capital increase of €900 million.

BNP Paribas increased 1.09% to €49.31 after the French bank has frozen two investment funds worth an estimated €236 million citing technical reasons, reports suggest.

International Minerals Corp. climbed 0.56% to C$7.19 after the Canadian mineral explorer signed a joint venture agreement with London-based Hochschild Mining Plc to fast-track production at the jointly-owned Inmaculada property in southeastern Peru.

Plaza Centers N.V. surged 6.56% to 97.50 pence after the developer of shopping and entertainment centers said its joint subsidiary, EPN Investment Management, LLC, signed a Real Estate Purchase and Sale Agreement, to acquire seven retail shopping centers located in the U.S. for a total purchase price of $75 million, from affiliates of Charter Hall Retail REIT.

Rio Tinto plc fell 1.31% to 4,513.00 pence after the multinational mining and resources group said that force majeure has been declared on coal sales contracts from mines in Queensland in which Rio Tinto Coal Australia holds the majority interest. Severe rain in central and northern Queensland has affected shipments and life in most of the state.