European Indexes Rebound; ASML Net Surges

Arthi Gupta
13 Apr, 2011
New York City

The European indexes rebounded after the biggest drop in four weeks as industrial production accelerated in February. Schneider denied $30 billion bid for Tyco. ASML net surges on strong sales.

[R]2:00 PM Frankfurt – The European indexes rebounded after the biggest drop in four weeks as industrial production accelerated in February. Schneider denied $30 billion bid for Tyco. ASML net surges on strong sales.[/R]

U.S. indexes rose after JPMorgan first quarter earnings surged. Asian markets advanced on optimism about global economic recovery.

European indexes climbed after industrial production grew a seasonally adjusted 0.4% on a monthly basis in February as against the revised 0.2% increase in January, according to the Eurostat on Wednesday.

On an annual basis, industrial output growth accelerated to 7.3% in February from a revised 6.3% in January.

Industrial production in European Union member states rose 7% annually and was up 0.2% on a monthly basis in February.

In Paris CAC-40 Index gained 47.74 or 1.20% to 4,024.34 and in Frankfurt DAX index climbed 86.89 or 1.22% to 7,189.80.

Schneider Denies Bid for Tyco

Schneider Electric S.A., the French energy management company made, which was rumored to have made a potential takeover bid for Swiss security products maker Tyco International Ltd. denied the rumors. The company also said it is not in discussion with Tyco.

Earlier in the day, a Wall Street Journal report speculated that Schneider made a preliminary bid of about $30 billion for Tyco.

Toyota Suspends European Production

Toyota Motor Corp. decided to halt production for several days in late April and early May at five European plants on parts supply difficulties following the March 11 earthquake in Japan.

The plants affected are Toyota Motor Manufacturing (UK) Ltd., Toyota Motor Manufacturing Turkey Inc. and Toyota Motor Manufacturing France S.A.S. The decision also applies to engine plants Toyota Motor Industries Poland Sp. Zo. o. and TMUK Engine Plant.

Deutsche Bank Unit Launches Debt Offer

Deutsche Bank AG''s London Branch announced a debt offer to Schiphol Nederland B.V.''s guaranteed noteholders.

Separately, reports said that Deutsche Bank plans to reorganize the operations of its main U.S. unit, Taunus Corp., to meet new financial regulations, citing people familiar with the matter. The planned move by Deutsche Bank will help the unit to avoid raising up to $20 billion in new capital, the reports said.

Gainers & Losers

ASML Holding N.V. fell 0.56% to €29.25 after the semiconductor equipment maker reported first quarter net sales rose 95% to €1.45 billion from €741.8 million in the same quarter last year. Net income in the quarter surged 269% to €395 million or 0.90 euro per share compared with net income of €107 million or 0.25 euro per share a year ago.

BP plc dropped 2.94% to $45.30 after the British energy giant is reportedly seeking to salvage its proposed $16 billion share swap deal with Russian state-run oil company OAO Rosneft ahead of BP''s annual meeting.

Russia''s Rosneft said the April 14 deadline set for a share swap deal with BP has not been extended. The deal has been challenged by majority shareholders at TNK-BP, BP''s joint venture company in Russia.

Daimler AG gained 0.69% to €50.82 after the German car manufacturer reported higher vehicle sales for its first quarter, with double-digit growth in cars, trucks and vans. The company also backed its forecast of strong earnings and revenue growth for 2011.

The company said first quarter unit sales by the Mercedes-Benz auto division grew 12% from the year-ago quarter. Daimler anticipates unit sales of more than 1.2 million automobiles solely of Mercedes-Benz brand in the full year.

Infineon Technologies AG rose 2.43% to €7.18 after the German chipmaker filed a patent lawsuit against U.S. rival Atmel Corp. in the United States District Court for the District of Delaware.

Novartis AG climbed 0.13% to $55.26 after the provider of healthcare solutions said an FDA oncology advisory committee unanimously recommended its Afinitor tablets for the treatment of advanced neuroendocrine tumors of pancreatic origin.

Rio Tinto Plc advanced 0.76% to 4,436.50 pence after the Anglo-Australian mining giant reported lower production of iron ore and other minerals in the first quarter, as the operations were severely hurt by three tropical cyclones and widespread flooding.

First quarter global iron ore production was 41.88 million tons attributable, 3% lower than last year''s 43.36 million tons. However, the company guided higher production of copper, alumina and iron ore in the year to June.