IMF Approves

Arthi Gupta
16 Mar, 2012
New York City

European indexes gained after the International Monetary Fund approved a

[R]2:45 PM Frankfurt – European indexes gained after the International Monetary Fund approved a €28 billion loan for Greece. The euro area trade balance swung to a deficit in January. UK home prices sentiment index fell for the twenty-first consecutive month in March. Air Berlin fiscal 2011 loss widened.[/R]

European indexes edged higher after the International Monetary Fund approved a new €28 billion loan for Greece as part of the overall financing package agreed by Athens and its partners in the euro-zone.

The IMF contribution of €28 billion will be disbursed in equal tranches over a four-year period and approval of the new program will lead to the immediate disbursement of about €1.65 billion.

In Paris trading, the CAC-40 Index rose 8.64 or 0.2% to 3,588.85 and in Frankfurt the DAX Index edged higher 40.82 or 0.8% to 7,185.14.

For the week, the CAC-40 Index soared 2.9% and the DAX Index surged 4.4%.

Euro-zone Slips to Deficit

Euro area trade balance swung a deficit of €7.6 billion in January compared to a surplus of €9.1 billion in December, revised down from €9.7 billion, data released by statistics office Eurostat showed today.

Exports rose a seasonally adjusted 1.3% on a monthly basis to €152.3 billion in January compared to the 0.9% growth in December.

Imports increased 2.4% to €146.4 billion in January from the 0.4% fall in December.

In the European Union, the trade deficit was €23.8 billion compared to the €1.6 billion surplus in December. Seasonally adjusted exports and imports increased 1.5% and 3.5% respectively in January.

UK Home Price Sentiment Drops

UK home price sentiment index declined for the twenty-first consecutive month in March, data from a survey by Knight Frank and Markit Economics showed today.

The sentiment index showed that home price declines continued, although at a less rapid rate.

Around 11% of households believed that the value of their home had risen since February, while around 18% estimated a fall. The HPSI increased in March to 46.6 from 43.1 in February.

Gainers & Losers

AB Volvo rose 1.2% to SEK 100.10 after the Swedish automaker reported a 3% growth in total deliveries from its truck operations in February to 18,395 vehicles from 17,862 vehicles last year.

Air Berlin plc fell 2.1% to €2.25 after the German airline said fiscal year 2011 group revenue increased 13.7% to €4.23 billion from €3.72 billion last year. Net loss for the year widened 180% to €271.8 million compared to a loss of €97.2 million in the previous year.

Eni S.p.A. climbed 0.6% to €18.41 after the Italian energy company estimated €59.6 billion of investments in three years to 2015.

Gerry Weber International AG dropped 1.3% to €29.61 after the German fashion and lifestyle firm reported first quarter sales revenues grew 7.6% to €165.1 million from €153.5 million in the prior-year quarter. Like-for-like sales rose 6.2%.

Net profit for the quarter increased 17.3% to €11.5 million or 25 cents per share from €9.8 million or 23 cents per share a year earlier.

Sanofi SA dipped 0.1% to €59.29 after the diversified healthcare company agreed to acquire Pluromed Inc., a medical device company based in Massachusetts.

Shire Plc gained 1.1% to €2,181 after the Ireland-based specialty biopharmaceutical company agreed to acquire privately-held FerroKin Biosciences Inc. and its mid-stage iron chelator treatment for an upfront cash payment of $100 million plus post-closing milestone payments of up to $225 million.