European Indexes Higher; Portugal Election on June 5

Arthi Gupta
01 Apr, 2011
New York City

The European indexes rose after Chinese manufacturing activity improved in March. Nasdaq and ICE jointly bid for NYSE Euronext at 19% higher than Deutsche Boerse bid. Clariant agreed to acquire Canada-based Prairie Petro-Chem. Logitech fell on weaker 2011 outlook.

[R]2:00 PM Frankfurt – The European indexes rose after Chinese manufacturing activity improved in March. Nasdaq and ICE jointly bid for NYSE Euronext at 19% higher than Deutsche Boerse bid. Clariant agreed to acquire Canada-based Prairie Petro-Chem. Logitech fell on weaker 2011 outlook.[/R]

U.S. indexes traded higher after employment increased more than estimated in March. Asian markets gained after a rebound in manufacturing growth in China.

The Purchasing Managers’ Index from the China Federation of Logistics and Purchasing rose to 53.4 in March from 52.2 in February. March’s rise was the first upturn in the index in four months.

The Irish Central Bank after the stress test said four Irish banks need another €24 billion or $34 billion in cash to restore market confidence.

The figures are only appropriate in an ""adverse and unlikely"" situation, said Irish Central Bank Governor Patrick Honohan. The test found that the banks could face losses of €37.7 billion over the next three years under the ""stressed"" scenario.

Portuguese President Anibal Cavaco Silva said that the Iberian nation will go to the polls on June 5th following a decision taken at a meeting between the President and the Council of State. Prime Minister Jose Socrates resigned last week after the Parliament rejected an austerity proposal.

Crude futures increased to $106.93 a barrel after Libyan leader Muammar Qadhafi''s troops recaptured the oil producing towns of Ras Lanuf and Brega from the rebels in eastern Libya.

In Paris CAC-40 Index gained 28.56 or 0.72% to 4,017.74 and in Frankfurt DAX index edged higher 81.55 or 1.16% to 7,122.86. For the week, the CAC-40 Index advanced 1.15%.

Euro-zone seasonally adjusted jobless rate was 9.9% in February, down from an upwardly revised 10% in January, latest data from the Eurostat showed today.

Nasdaq and ICE Bid for NYSE Euronext

NASDAQ OMX and IntercontinentalExchange made a joint proposal to acquire NYSE Euronext for $42.50 in cash and stock or approximately $11.3 billion.

The proposal represents a 19% premium over the price proposed by Deutsche Boerse.

Clariant Buys Prairie Petro-Chem

Clariant AG, the Swiss specialty chemicals company said it acquired oil service company Prairie Petro-Chem, based in Saskatchewan, Canada. Financial terms were not disclosed.

Clariant said the acquisition significantly enhances its presence in the Bakken Shale, an area considered to be the number one oil and gas producing region in North America.

Gainers & Losers

Barry Callebaut AG surged 3.46% to Sfr377.00 after the Switzerland-based chocolate products maker reported sales revenue for the first-half of fiscal year 2011 rose 3.1% to Sfr2.74 billion, helped by cost control as well as favorable combined sales price for cocoa products relative to the cocoa bean price.

Net profit for the period increased 9% to Sfr158.8 million from Sfr145.7 million in the prior-year period.

Hermes International SCA gained 0.097% to €154.850 after the luxury goods firm is reportedly in talks to sell its 45% stake in the Jean-Paul Gaultier fashion brand.

Logitech International S.A. plunged 18.7% to Sfr13.45 after the computer peripherals maker lowered its fiscal year 2011 outlook, citing weakness in its Europe, Middle-East and Africa retail sales region.

The Switzerland-based company said it now expects fiscal year 2011 sales to be in the range of $2.35 billion to $2.37 billion, compared to its prior guidance of $2.4 billion to $2.42 billion.