European Indexes Rest; ASML Net Soars 81%

Arthi Gupta
13 Jul, 2011
New York City

European indexes inched higher after China reported faster than estimated second quarter economic growth. Euro-zone industrial production growth eased to 0.1% in May. ASML net soared 81% and Gerresheimer surged 8% after quarterly earnings increased.

[R]1:30 PM Frankfurt – European indexes inched higher after China reported faster than estimated second quarter economic growth. Euro-zone industrial production growth eased to 0.1% in May. ASML net soared 81% and Gerresheimer surged 8% after quarterly earnings increased.[/R]

European markets looked overseas in the absence of local economic news. China reported a sharp increase in economic expansion despite the recent monetary tightening stoking optimism that the current expansion may be sustained.

World indexes traded higher after positive Chinese GDP data offset lingering sovereign debt worries and Moody''s downgrade of Ireland''s credit rating to junk status.

Asian markets climbed after China''s gross domestic product rose 9.5% on year in the second quarter of 2011, following the 9.7% increase in the first quarter, the statistics bureau said on Wednesday.

Another report showed industrial production surged 15.1% and retail sales expanded 17.7% in June.

Moody''s downgraded Ireland''s foreign and local-currency government bond ratings by one notch to Ba1 from Baa3. The outlook on the ratings remains negative.

The rating agency said that the nation will need further rounds of official financing before it can return to the private market.

In Paris CAC-40 Index gained 2.40 to 3,776.52 and in Frankfurt DAX Index edged higher 31.87 or 0.4% to 7,206.01.

Euro-zone Industrial Production Eases

Euro-zone industrial production growth eased to 0.1% in May from the 0.2% rise in April, according to data published from Eurostat today.

Gainers & Losers

ASML Holding NV slumped 4.2% to €24.61 after the semiconductor equipment maker reported second quarter net sales surged 43% to €1.53 billion from €1.07 billion a year ago. Net income soared 81% to €432.1 million compared to €239.2 million a year ago. Earnings per share climbed to 1.00 euros from 0.54 euros last year.

BMW AG gained 1.31% to €68.12 after the German car manufacturer said first-half vehicle sales rose 19.7% to 833,366 vehicles from the year-ago period.

The company anticipates over 10% annual increase in 2011 unit sales to 1.6 million units compared to the 1.5 million units projected earlier, citing strong demand in the international auto markets.

Carrefour S.A. rose 1% to €22.22 after the hypermarket chain reported second quarter sales, including VAT and petrol sales, of €22.41 billion; and sales, including VAT ex-petrol, of €20.02 billion.

Gerresheimer AG surged 8.23% to €35.11 after the manufacturer of specialty products reported second quarter revenues grew 5.8% to €284.5 million from €268.8 million in the comparable period a year ago. Net profit grew 18.6% to €13.3 million from €11.2 million last year. Earnings per share were flat compared to a year ago to 0.38 euros.