European Indexes Sideways; AXA Up, Porsche, Continental Down

Marcus Jacob
28 Mar, 2011
New York City

European indexes traded sideways after German ruling coalition lost in two key regional elections. Crude oil declined after Libyan rebels advanced with the help of military support from U.S. and European nations. Porsche declined after it plans to sell shares.

two key regional elections. Crude oil declined after Libyan rebels advanced with the help of military support from U.S. and European nations. Porsche declined after it plans to sell shares. Continental AG fell after its key investor lowered its holding.[/R]

European stocks traded sideways in the early trading and energy prices eased in London. Asian markets closed mixed after Japan struggled with radiation leak.

German regional elections results were in line with expectations and ruling coalition controlled by Angela Merkel party suffered set backs in two regions. The Greens defeated Christian Democrat Union in Baden-Wuerttemberg and 58 straight years of rule in the state.

Chancellor Merkel after the results told a news conference, “We lost our majority there and that’s painful.” “It is a deep wound in the history of” state and for the party and “the pain from the loss won’t go away in just one day.”

Crude oil declined after Libyan rebels advanced and regained to oil complex cities and raised the prospects of higher oil flow to Europe.

The DAX 30 index edged 3 lower to 6,943.30 and CAC 40 index added 0.2% to 3,979.05.

Crude oil eased in London trading and futures of New York traded crude declined 19 cents to $103 a barrel. Gold and silver declined but traded near a 3-decade high in European trading.

Stock Movers

Continental AG increased 3.3% to 62.98 euros after Schaffler Group lowered its holding in the company to 60.3% from 75.1% to raise 1.8 billion euros.

Porsche SE declined 3% after the company said it plans to sell shares at 38 euros each.

Nokia increased 2.9% and Alcatel-Lucent rose 7.1% after Goldman Sachs recommended stocks and fueled speculation that stocks are undervalued.

Vestas increased 6% to 227.55 kroner after the results of German elections showed a win by environmental party.

Eurocopter, the largest civilian helicopter maker said that it has agreed to acquire Canada based Vector Aerospace for C$625 million or $637 million.

AXA SA increased 6 cents to 14.74 euros after its chief executive Henri de Castries told in a French TV interview that Japan disaster linked losses are estimated at 100 million euros before tax.

AstraZeneca increased 0.6% to 2,891 pence after the company said it won lower tax rate ruling that will free up $2.3 billion it set aside in the provisions and also lifted 2011 earnings outlook.

The company settled its net tax payment with the U.S. authority to a net payment of $1.1 billion.