Europe Rises On NYSE And Euronext Merger

Ivaylo
02 Jun, 2006
Frankfurt

NYSE agreed to buy Euronext, topping a rival bid from Deutsche B

[R]6:30AM European markets advanced on merger deal.[/R]
Markets in Europe were higher in early trade on Friday. Other factors, aside from the merger, were the disappointing purchasing managers’ data and a slightly higher initial claims report, taken as proof of slowing economic growth and a probable relief of inflationary concerns. The telecom sector performed strongly again, following news that a consortium of companies were about to announce a bid for Portugal Telecom. KPN advanced 1.2% after securing a better position by buying Demon Netherlands from Thus. Telefonica added 0.9% following its upgrade by Bernstein and JPMorgan’s lifting its price target on the Spanish operator and reaffirming the “overweight’ rating. Porsche, sports car manufacturer, advanced 3.6% on US sales. Raiffeisen International, Austrian banking, rose 4.8% on an improved rating by Deutsche Bank.

Light, sweet crude oil for July delivery advanced 53 cents to $70.87 a barrel and July Brent on rose 17 cents to $69.56 per barrel. Gold opened Friday at a price of $626.30 a troy ounce, lower from $630.60 late Thursday. The euro rose slightly against the dollar. In morning trading, the euro bought $1.2803, higher than $1.2797 on Thursday in New York. The British pound dropped to $1.8627 from $1.8643, while the dollar advanced to buy 112.75 Japanese yen from 112.68 the day before.

[R]5:00AM Gold and silver fell driven by concerns of hiking interest rates.[/R]
On the NYME, gold shed $15.50 to finish at $633.50 an ounce. Earlier in the trading, gold had plunged to $625.70 an ounce - its lowest level since April 21. July silver tracked movement of gold, dropping 55 cents to close Thursday at $11.905 an ounce. July platinum dipped $17 an ounce to finish at $1,229.80 an ounce, after reaching a low of $1,215. September palladium finished at $342.90 an ounce, $10.25 lower. The most-traded July copper contract dropped 15.3 cents to close at $3.4710 per pound.

July crude oil settled 95 cents lower at $70.34 a barrel, after rallying to $71.90 earlier. July gasoline ended 3.15 cents up at $2.1272 a gallon, after rising to $2.1845 a gallon earlier. On the New York Board of Trade, July Arabica coffee settled 1 cent higher at 99.95 cents a pound. The July contract for raw sugar in foreign ports finished down 0.32 cent at 15.14 cents a pound.