Europe Gains after Arcelor Move

Ivaylo
26 May, 2006
Frankfurt

On Thursday, European stocks recovered some of their recent losses but trading volumes were slimmer than usual with several markets closed for the Ascension Day holiday. European markets traded higher in the morning session, benefiting from a strong close in New York. The FTSE 100 in London gained 0.6%, the Xetra Dax in Frankfurt was up 0.5% and the CAC 40 in Paris advanced 0.6%.

[R]6:30AM Europe advances in the morning on Arcelor and U.S. higher close.[/R]
European markets started higher in the morning session of trading. On the corporate front, Arcelor, still fighting a hostile takeover bid from Mittal Steel, announced that it had agreed to buy Russia’s Severstal. Despite the deal, Arcelor fell 4.1%, while its rival Mittal Steel gained 2.8%. Another steel maker, Thyssen Krupp, also added 4.2%. Natexis Banque Populaire, an investment bank soared 10% on hopes that the merger with Caisse d’Epargne’s IXIS can now proceed. Deutsche Börse jumped 3.9% and Euronext climbed 2.4% after being upgraded both by Credit Suisse to “outperform”.

Crude oil advanced 15 cents to $71.47 a barrel by 0247 GMT; London Brent crude gained 17 cents at $70.88. Gold bullion opened Friday at a bid price of $650.80 a troy ounce, higher than $643.75 late Thursday. The dollar gained against the euro. The euro bought $1.2785 in morning European trading, down from $1.2793 in New York late Thursday. The British pound remained virtually unchanged, moving up to $1.8718 from $1.8717. The dollar advanced to 111.92 Japanese yen from 111.76 yen.

[R]5:00AM Gold rises, helped by crude oil.[/R]
June gold advanced $11 to $648.50 an ounce on the NYME. July silver gained 8.5 cents to $12.60 an ounce. Most-traded July copper closed 6.85 cents higher at $3.7075 per pound. July crude oil finished up $1.46 at $71.32 a barrel. June gasoline was up 8.54 cents at $2.1044 a gallon. On the New York Board of Trade, Arabica coffee futures plunged to 5-month lows. July futures closed 1.15 cents lower at 98.65 cents a pound, hitting previously a low of 98.10 cents a pound. September finished down 1.15 cents at $1.0155 cents a pound. July futures on raw sugar in foreign ports ended up 0.03 cent at 16.24 cents a pound, while October advanced 0.01 cent at 16.45 cents a pound.