European Markets Flat; Daimler Net Soars 93%, Total Net Up 51%

Arthi Gupta
29 Apr, 2011
New York City

The European indexes traded mixed after weaker-than-anticipated economic data. Euro-zone inflation accelerated for a fifth consecutive month in April and German retail sales dropped unexpectedly in March. Daimler and Total reported strong quarterly earnings.

[R]1:00 PM Frankfurt – The European indexes traded mixed after weaker-than-anticipated economic data. Euro-zone inflation accelerated for a fifth consecutive month in April and German retail sales dropped unexpectedly in March. Daimler and Total reported strong quarterly earnings.[/R]

U.S. indexes are flat on mixed economic data and earnings. Asian markets declined on worries that China may further tighten its monetary policy.

Euro-zone inflation accelerated for a fifth consecutive month in April, preliminary data from Eurostat showed. The harmonized inflation rose to 2.8% in April from 2.7% in March.

German retail sales dropped unexpectedly in March for the second consecutive month. Retail sales slipped by a real 2.1% on a monthly basis in March compared to a 0.4% fall in February, data from the Federal Statistics Office showed.

In Paris CAC-40 Index declined 7.26 or 0.18% to 4,097.64 and in Frankfurt DAX index edged higher 17.93 or 0.24% to 7,493.15.

The UK market is closed today on account of the Royal Wedding.

Total Group Acquires Stake in SunPower

SunPower Corp., the solar power products company agreed to sell a controlling stake of up to 60% to French oil company Total SA in a friendly tender offer at $23.25 per share or about $1.38 billion, which values SunPower equity at about $2.3 billion.

Accor Contemplates Sale of Lenôtre

Accor Group, the French hotel operator said it is considering the potential disposal of Lenôtre catering business, in line with Accor''s strategic refocusing on its core hotel business.

Gainers & Losers

Daimler AG fell 1.79% to €52.14 after the German car maker said first quarter group revenue increased 17% to €24.7 billion from €21.2 billion prior year. Net profit for the quarter soared 93% to €1.18 billion or €0.99 a share from €612 million or €0.65 share, in the year-earlier quarter.

Enea AB gained 0.47% to SEK 53.25 after the global information technology company said first quarter net sales fell 1% to SEK 184.5 million compared with SEK 186.3 million in the previous year. Net profit in the quarter increased 73.6% to SEK 15.1 million or SEK 0.87 per share versus SEK 8.7 million or SEK 0.50 per share in the prior year.

MorphoSys AG surged 4.15% to €19.84 after the German biotechnology company reported first quarter revenues surged 136% to €48.6 million from €20.6 million in the previous year. Net profit in the quarter soared 487.5% to €18.8 million or 0.81 euros per share from €3.2 million or 0.14 euros per share a year ago.

SSAB Svenskt Stal AB soared 6.96% to SEK 105.30 after the Swedish steelmaker stated first quarter sales increased 25% to SEK 11.06 billion from SEK 8.87 billion in the prior-year quarter. Profit in the quarter surged 507% to SEK 504 million or SEK 1.20 per share from SEK 83 million or SEK 0.44 per share a year ago.

Total SA climbed 0.77% to $63.80 after the French multinational oil company said first quarter sales rose 22% to €46.03 billion compared with €37.60 billion in the previous year. Net income, group share, increased 51% to €3.95 billion from €2.61 billion last year.