Europe Gains on Earnings

Ivaylo
17 May, 2006
Frankfurt

Although New York closed a bit lower, reflecting the weaker-than-expected economic data, Asia markets were upbeat Wednesday. That together with strong earnings reports coming from companies across the region gave stocks a boost. Vivendi raised its full-year estimate and its shares were up 4.9%. EADS, the aerospace company advanced 3% after an upgrade by Deutsche bank. By mid morning, London

[R]6:30 AM Early European trade gains on earnings and mining stocks.[/R]
European markets traded higher Wednesday morning as equity markets gained on strong advances in Asia, the optimistic earnings reports and upbeat mining stocks. Vivendi, the French media group, continued repel moves at breaking up the company, releasing robust earnings outlook. Its shares were up 4.9%.London-listed miners also gained. Antofagasta advanced 3.2%, while BHP Billiton rose 1.9%. Tesco, the UK’s retailer, advanced 1.1%, while France’s Credit Agricole lost 0.8%.

Light crude oil gained 19 cents at $69.72 a barrel by 0713 GMT after gaining a humble 12 cents on Tuesday. London Brent for July delivery advanced 20 cents at $70.28. Gold for June delivery rose $19.80 to $712.70 an ounce, thanks to stronger-than-expected open on the Tokyo Commodity Exchange. The euro was traded at $1.2863, up from $1.2853 in New York late Tuesday, while the British pound advanced to $1.8908 from $1.8876. The dollar bought 109.17 yen.

[R]5:00 AM Gold rises as the dollar weakens against the euro.[/R]
June gold advanced $7.90 to close at $692.90 an ounce Tuesday on the NYME. Gold had shed about 4 % on Monday but rebounded due to the decline of the greenback vs. the euro, following weaker than expected U.S. economic data, suggesting that the Federal reserve may pause its monetary tightening.Silver also advanced 20.5 cents to close at $13.540 an ounce, and platinum rose $18.10 to end at $1,302.90 an ounce. Palladium followed suit and added up $2.25 to finish at $377 an ounce. Copper closed with a gain of 9.55 cents at $3.8420 per pound.

Crude oil futures advanced 12 cents to close at $69.53 a barrel but according to traders the market is skeptical about slowing demand. Gasoline futures ended 2.79 cents down at $2.0261 a gallon. July Arabica coffee futures closed 1 cent up at $1.0260 a pound and raw sugar in foreign ports for July finished down 0.14 cent at 17.03 cents a pound.