Telecoms and Autos Lift Europe

Elena
09 May, 2006
Frankfurt

European markets rose at mid-day, lifted by gains in the telecoms and automotive sectors which helped offset weakness among technology stocks. Merger-and-acquisition deals provided some support with steelmaker Arcelor rising 2.3% on speculations that Mittal will raise its bid. The German DAX 30 added 0.2%, the French CAC 40 rose 0.4%, and London FTSE 100 climbed 0.6%.

[R]8:15AM European markets gained ground at mid-day.[/R]
European markets advanced at mid-day, lifted by gains in the telecommunications and automotive sectors which helped offset weakness among technology stocks. Shares of Vodafone Group rose 3.2% on a report that U.S. Verizon Communications offered to buy out Vodafone''s 45% stake in Verizon Wireless for $38 B. Automakers Renault and BMW rose 3% each, following a brokerage upgrade on General Motors. Among tech stocks, microchip maker Infineon Technologies and STMicroelectronics declined after computer giant Dell cut its profit outlook. Merger-and-acquisition deals provided some support with steelmaker Arcelor rising 2.3% on speculations that Mittal will raise its offer. The German DAX 30 added 0.2%, the French CAC 40 rose 0.4%, and London FTSE 100 climbed 0.6%.


[R]7:45AM Asia closed largely lower. China Shanghai Composite surged.[/R]
Asian-Pacific benchmarks finished broadly lower, reflecting currency jitters, profit taking and cautiousness ahead of U.S. Fed Reserve’s decision on interest rates Wednesday. However, China Shanghai Composite jumped 2.3%, extending Monday’s rally on improved demand for Chinese shares. Brokerage Citic Securities rose by the 10% daily limit on news that it plans to issue 500 million new shares to Chinese institutional investors. Across the region, the Nikkei slipped 0.6% to 17,190.90 as weaker dollar weighed on exporter issues, threatening to hurt overseas earnings. Export-related high-tech component maker Kyocera fell 2.3%, followed by optics and electronics giant Canon, which dropped 1.4%. In currency markets the dollar bought 111.65 yen. Hong Kong’s Hang Seng slid 1%, dragged down by real-estate issues and energy stocks. Taiwan weighted index slipped 1.1%, Singapore Straits Times lost 1.1%, while Australia’s All Ordinaries inched up 0.05%, helped by the country’s top logistics firm, Toll Holdings, up 6.42%.