Mining Stocks Boost Europe

Elena
02 May, 2006
Frankfurt

European markets advanced at mid-day, boosted by strength in mining and oil stocks, including companies like BP and Xstrata. Some corporate news also generated positive sentiment with Suisse Credit Group up 2.2%, Lafarage, up 1.7%, Alcatel up 0.8%, and Heineken, up 2.4%. The German DAX 30 added 0.4%, the French CAC 40 rose 0.6%, and London FTSE 100 climbed 0.7%.

[R]8:15AM European markets advanced at mid-day on resource stocks.[/R]
European markets resumed trading Tuesday after the long holiday weekend, posting gains on strong resource stocks and corporate news. Commodities, oil and gas stocks advanced with BP and Xstrata standing out among gainers. However, Spain’s Repsol declined 2.1% after Bolivia nationalized its natural gas sector. Oil prices hovered over $74 a barrel, while gold futures traded about $657 per ounce. In corporate news, Credit Suisse Group rose 2.2% after reporting Q1 net income growth of 36%. French Lafarge gained 1.7% on 28% sales increase in the first quarter. Telecoms group Alcatel and beer company Heineken gained on brokerage upgrade, rising 0.8% and 2.4% respectively. The German DAX 30 added 0.4%, the French CAC 40 rose 0.6%, and London FTSE 100 climbed 0.7%.


[R]7:30AM Strong Nikkei boosts Asian markets.[/R]
In Japan the Nikkei 225 advanced 228.06 points, or 1.4%, to 17153.77 on Bridgestone’s results and gains in commodity issues, led by oil and metal prices in the U.S. South Korean Kospi ended up 1.1%, or 15.17 points up, at 1434.90 on robust earnings news and optimistic outlooks despite Hyundai Motors displayed weakness. Hong Kong’s blue-chip Hang Seng closed also higher 206.74 points, or 1.24%, to 16868.04, after fears about interest rates alleviated. In automotive stocks, Bridgestone soared 4.9% as the tire maker profits advanced despite higher raw material costs. Other gainers were Mitsui & Co ending 1.7% up on strong mining and energy stocks, as well as Nippon Oil, gaining 1.2%, Sumimoto Metal Mining, producer of gold by volume, which put up 2.3% on gold prices. The dollar was trading at 113.82 yen late Tuesday in Tokyo, up 0.49 yen against Monday levels in New York.