European Markets Flat; Reiffeisen Bank Net Up

Arjun Dave
26 May, 2011
New York City

European markets traded flat as commodities increased and crude oil hovered near $100 price. Talks of Greek default dominated trading sentiment. European automakers declined. Austria based Reiffeisen Bank reported a slight increase in quarterly earnings.

[R]2:00 PM Frankfurt – European markets traded flat as commodities increased and crude oil hovered near $100 price. Talks of Greek default dominated trading sentiment. European automakers declined. Austria based Reiffeisen Bank reported a slight increase in quarterly earnings.[/R]

Market indexes in Europe traded flat in the absence of any economic and corporate news. Commodities traded higher in London and crude oil traded near $100 a barrel line.

DAX 30 index in Germany declined 0.4% to 7,145.83 and CAC 40 index edged up 1.18 to 3,927.16. The index in Spain inched up 0.3% and in Italy was nearly flat.

Talks of Greece were in focus. Former European Central Bank Chief Economists Otmar Issing said Greece is “insolvent” but it is “not physically impossible” that it will repay its debt.

Paul Krugman, the Nobel prize-winning economist said at a conference that it is “extremely” unlikely that Greece will be able to repay its debt and added there is a 50% chance that Greece may abandon the euro.

U.S. Commerce Department said economy expanded at 1.8% in the first quarter. The data was unrevised from the previous estimate in April. The U.S. economy expanded at 3.1% in the fourth quarter.

Seasonally adjusted U.S. weekly jobless claims increased 10,000 to 424,000 from the revised previous week revised claims of 414,000.

The preliminary insured unemployment rate in the week ending May 14 fell 0.1% from the prior week''s unrevised rate of 3.0%.

Stock Movers

European automakers declined. BMW AG dropped 1% to 60.14 euros and Volkswagen declined 1.4% to 122.45 euros.

EnviTec Biogas AG increased 0.8% to 10.49 euros after the bio gas generator reported first quarter net income of 0.5 million euros compared to a loss of same amount a year ago.

Singulus increased 5.2% to 4.48 euros after the maker of Blu-ray optical discs estimated net profit in the current year after losses for three years in a row and estimated sales increase of 33% in the year.

Austria based Raiffeisen Bank International AG said pre-tax profit in the first quarter increased to 405 million euros compared to 392 million a year ago.

Germany based Steel and metals maker Klockner & Co SE said its board approved the plan to increase its authorized capital.