European Markets Extend Gains, Hungarian Construction Soars 12%

Nigel Thomas
15 Jul, 2013
New York City

Market indexes in Europe extended gains of last week but trimmed early advance. Resource and commodities linked companies gained after China

[R]4:00 PM Frankfurt – Market indexes in Europe extended gains of last week but trimmed early advance. Resource and commodities linked companies gained after China’s economic expansion met the growth target set by the government. Polish inflation slowed. Hungarian construction soared and Danish wholesale prices rose.[/R]

European markets advanced after China met lowered economic growth expectations. Market indexes in London, Paris and in Frankfurt gained.

Market indexes in London gained 0.5% and in Frankfurt added 0.2% and in Paris advanced 0.4%.

For the year so far, FTSE 100 index added 6.6%, and DAX index advanced 3.8% and CAC 40 in Paris jumped 2.9%.

Inflation in Poland, as measured by consumer price index, slowed to 0.2% increase in June after rising at 0.5% in May, Central Statistics Office said today.

The decline was largely driven by the 3.5% fall in transportation costs and a 4.7% increase in apparel and footwear costs.

Separately, Denmark’s producer price index or a measure of wholesale prices increased 0.6% in June from a year ago, Statistics Denmark reported today. Prices of goods sold in domestic market increased to 3.4% and in exports markets declined 1%.

Construction output in Hungary after adjusted for seasonal factors soared 11.2% in May from a year ago after rising 9.8% in April, the Hungarian Statistical Office said today. Construction output declined 0.8% on a monthly basis. New orders in the month increased 5.1% from a year ago.

UK home price survey showed an increase in price sought by sellers for the seventh month in a row, according to Right Move Plc.

Stocks in Review

SEB AB, the fourth largest Swedish bank, said second quarter net income soared 28% to 3.79 billion kronor. The earnings were ahead of expectations of at least 3.15 billion kronor.

Commerzbank increased 4% after Wells Fargo agreed to acquire real estate portfolio of Hypothekenbank Frankfurt in the UK in a transaction that is expected to close before September.

Man Group declined 4% after Russian coal miner Sibanthracite Plc canceled its public offering. The GLG Emerging Markets Growth Fund, owned by Man Group, controlled 25% of the company and is the largest shareholder in the coal miner.

Kuehne & Nagle International AG increased 3% to Sfr113 after the largest freight forwarding company in the world said second quarter net income increased 6.3% to Sfr153 million.

Carrefour, the French hypermarket operator in Europe and Brazil, advanced 1.5% after positive comments from Barclays Plc.

AstraZeneca said its Chief Finance Officer and Executive Director Simon Lowth resigned from the drug maker and would join energy company BG Group from October. BG Group gained 0.4%.