European Indexes Rise; Manufacturing Advances

Arthi Gupta
03 Jan, 2011
New York City

The indexes rose after manufacturing grew in many European nations. Estonia became the seventeenth nation to join the euro zone. Curamik Electronics agrees to be acquired by U.S.-based Rogers for

[R]4:00 PM Frankfurt – The indexes rose after manufacturing grew in many European nations. Estonia became the seventeenth nation to join the euro zone. Curamik Electronics agrees to be acquired by U.S.-based Rogers for €116 million.[/R]

World markets rose buoyed by optimism that there is scope for economic recovery after better-than-estimated global economic data.

Estonia completed the transition to euro, the seventeenth nation and also the first former Soviet Union state to join the currency union.

China pledged to make ""positive efforts"" to enforce financial stability in Spain and aid the Iberian country''s struggling recovery.

Beijing''s ambassador to Spain, Zhu Bangzao, told the Xinhua news agency that the visit of the Chinese Vice Premier Li Keqiang to Madrid this week will ""play a key role"" in helping Spain and other European nations to restore market confidence.

Swedish central bank''s executive board believes that the repo rate needs to be raised gradually, notes of the monetary policy meeting, held on December 14, showed today.

""The Executive Board''s assessment was that the repo rate gradually needs to be raised in order to stabilize inflation close to the Riksbank''s target of 2% and to avoid too high a level of resource utilization in the Swedish economy,"" minutes read.

In Paris CAC 40 Index surged 77.70 or 2.04% to close at 3,882.48 and in Frankfurt DAX Index edged higher 77.43 or 1.12% to close at 6,991.62. The UK and Ireland markets are closed today.

Euro Area Manufacturing PMI Climbs

Euro-zone manufacturing activity ended 2010 on a strong footing, a survey from Markit Economics showed.

The final Purchasing Managers Index for manufacturing rose to 57.1 in December, from 55.3 in November and its highest reading since April''s 46-month peak.

German Manufacturing PMI Up

Germany''s manufacturing activity rose the most since July, survey data released by Markit Economics showed today.

The Markit/German Association for Materials Management, Purchasing and Logistics, purchasing managers'' index rose to 60.7 in December from 58.1 in November.

French Manufacturing Sector Grows, Car Sales Drop

The performance of the French manufacturing sector remained robust with the headline Purchasing Managers'' Index declining marginally to 57.2 in December, from November''s ten-year high of 57.9, Markit Economics said on Monday.

French car sales declined 2.2% in 2010 to 2.25 million units, French auto makers'' association CCFA said on Monday. In 2009, a total of 2.3 million units were sold. After adjusting to seasonal variations, the decline was 3%.

Car sales dipped 0.7% annually to 228,383 in December from 229,990 a year earlier, the report said. After adjusting to working day variations, the car sales fell 5% from December 2009.

Dutch Manufacturing Activity Soars

Dutch manufacturing growth accelerated in December led by higher demand, according to survey data released on Monday.

The Markit-NEVI manufacturing purchasing managers'' index rose to a seasonally adjusted 57.5 in December, from 56.5 in November.

Dutch manufacturing output rose for the 18th successive month and at the fastest pace since May in December.

Swedish PMI Eases

Sweden''s Purchasing Managers'' Index dropped to 60.2 in December from 61.3 in November, a survey by Swedbank and Swedish National Association of Purchasing and Logistics showed. This was the lowest reading since December 2009.

The index for production fell to 62.8 in December from 64.2 in November and the index for new orders rose to 63.6 in December from 60.4 in November.

Poland Manufacturing Activity Improves

Poland''s manufacturing economy remained on an impressive growth path at the end of 2010, the latest HSBC survey data compiled by Markit showed on Monday.

The headline HSBC Manufacturing Purchasing Managers'' Index rose to 56.3 in December from 55.9 in November. The latest figure pointed to the best overall performance of the sector since May 2004.

Spanish Inflation Surges, Manufacturing Improves

Spain''s harmonized measure of consumer prices surged 2.9% annually in December, from 2.2% in November, statistics office INE said on Monday. The INE said the rise was driven by higher tobacco and fuel prices.

Spanish manufacturing activity picked up in December led by a sharp rise in overseas demand, survey data showed.

The Markit manufacturing purchasing managers'' index increased to a seasonally adjusted 51.5 in December, from 50.0 in November. The reason for the increase was higher inflow of new orders, especially from overseas markets.

Spanish car sales increased 3.1% in 2010 from the previous year, car manufacturers'' association ANFAC said on Monday. For the full year, car sales totaled 982,015 units.

Czech Manufacturing Activity Strengthens

Czech manufacturing activity picked up in December to its strongest in over three years, survey data showed on Monday.

The Markit-HSBC manufacturing purchasing managers'' index climbed to a seasonally adjusted 58.4 in December, from 57.3 in November.

The reason for the increase was higher inflow of new orders, climbing at the fastest pace in three months. New export orders also climbed at the fastest rate since September.

Swiss Manufacturing Activity Slackens

Swiss manufacturing activity eased notably in December from November''s four-month high, survey results from the SVME Association of Purchasing and Materials Management and Credit Suisse showed today.

The seasonally adjusted SVME Purchasing Managers'' Index declined to 59.6 in December from 61.8 in November.

Italian Manufacturing PMI Soars

Italian manufacturing rose at the fastest pace in over three-and-a-half years in December as new orders and output picked up, a fresh survey suggested on Monday.

The Markit-ADACI manufacturing purchasing managers'' index edged higher to a seasonally adjusted 54.7 in December, from 52.0 in November.

Irish Manufacturing Activity Grows

Irish manufacturing sector expanded in December led by solid growth in new orders and production, data from Markit Economics showed today.

The seasonally adjusted NCB manufacturing purchasing managers'' index rose to 52.2 in December from 51.2 in November.

Rogers Acquires Curamik Electronics

Rogers Corp., a manufacturer of specialty materials and components signed an agreement to acquire 100% of the stock of Germany-based Curamik Electronics GmbH, a manufacturer of power electronic substrate products, for €116 million or about $154.85 million, subject to closing adjustments.

Curamik is expected to add to Rogers $115 million to $125 million in sales and $0.20 to $0.30 in net earnings per share in 2011.

Gainers & Losers

Actelion Ltd. gained 1.07% to Sfr51.75 after the Switzerland-based biopharmaceutical company said that Elias Zerhouni resigned from Actelion''s Board of Director at the end of 2010.

EDAP TMS SA climbed 0.18% to $5.64 after the developer and marketer of the Ablatherm device agreed to reduce the current outstanding debt by $4.6 million to $10.5 million.

The company issued 1,441,743 ordinary shares in the form of American Depositary Shares in exchange for 4,558 senior debentures, equivalent to $4.56 million, and 986,965 warrants.

Kuoni Reisen Holding AG gained 2.31% to Sfr464.75 after the Switzerland-based tourist travel corporation said it is acquiring Belgium tour operator Best Tours for an undisclosed price in order to expand its business in the Belgium market substantially.

Lagardere SCA surged 9.46% to €33.74 after the French media group held exclusive talks with U.S.-based Hearst Corp to sell its international magazines unit.

SeaDrill Limited increased 2.08% to NOK 201.30 after the offshore drilling contractor entered into an agreement to acquire two ultra-deepwater semi-submersible drilling rigs, Seadragon I and Seadragon II, having a project price of $1.2 billion.

Simcorp A/S plunged 5.25% to DKK 848.00 after the Denmark-based business software developer estimates it will not meet its revenue forecasts for 2010.

Volkswagen AG soared 4.15% to €110.30 after the Germany-based automobile manufacturer’s supervisory board unanimously extended the contract of management board chairman Prof. Dr. Martin Winterkorn for another five years.