European Markets Lead Higher; Adidas, SolarWorld Up, Julius Baer Down

Nigel Thomas
07 Feb, 2011
New York City

European markets closed higher as commodities perk up and merger deals of more than $20 billion in the U.S. bolstered trading sentiment. Adidas AG gained after its chief made positive comments and predicted one billion euros sales in China this year. SolarWorld AG rose after earnings rose 26%.

[R]4:30 PM Frankfurt – European markets closed higher as commodities perk up and merger deals of more than $20 billion in the U.S. bolstered trading sentiment. Adidas AG gained after its chief made positive comments and predicted one billion euros sales in China this year. SolarWorld AG rose after earnings rose 26%.[/R]

In European trading stocks edged lower after Germany reported a decline in orders.

Factory orders fell 3.4% in December from November and rose 19.7% from a year ago month. Orders in November increase 5.2% and was the fifth monthly increase in a row according to a statement from the Economic Ministry in Berlin.

Domestic orders fell 2.4% in December and foreign orders fell 4.2% in the month.

Banco Santander Commences Tender Offer for a Polish Bank

Spain based Banco Santander agreed to acquire Poland based Bank Zachodni for a 16.6 billion zloty or $5.8 billion.

According to the news distributed by Polish newswire PAP, Santander offered 226.89 zloty a share. Allied Irish, Ireland government controlled bank, is divesting its 70% stake in the bank after the collapse of real estate bubble.

The tender offer will start on March 25 and end on April 1

The deal was first announced in September will give the Irish bank 3.1 billion euros and also includes its stake in the asset management unit.

Nokia traded higher after the company was reported in German media to prepare for management shakeup as early as this Friday.

Newly appointed Stephen Elop, Microsoft veteran is expected to not only focus on group executive board that includes 10 executives and also to management. Nokia’s mobile handset unit and markets unit are expected to see new leaders.

Stock Movers

Adidas added 3.5% to 47.60 euros after chief executive Herbert Hainer said China sales are likely exceed 1 billion euros and total company sales are expected to increase significantly. The news was first reported by DAF Deutsches Anleger Fernsehen.

Switzerland based Julius Baer Group Ltd declined 2.3% to Sfr44.57 after it said net income in 2010 fell to Sfr353 million from Sfr389 million a year ago and the private banking group announced a plan to purchase as much as 5% of its stock or Sfr500 million of shares.

Xstrata Plc rose more than 3% to 1,640 pence after an analyst at Citigroup lifted price target to 2,011 pence.

Air Berlin Plc gained nearly 4% to 3.59 euros after the discount airline said January passenger count increased 5.7% to 2.15 million and load factor expanded to 69%.

SolarWorld soared 9.6% to 8.57 euros after the company said full-year operating earnings rose to 193 million euros from 153 million euros and company proposed to increase dividend to 19 euro cents a share.