European Markets Rebound; Accor, L'Oreal and Novartis in Focus

Nigel Thomas
17 Jul, 2013
New York City

European markets rebounded from morning losses and traded higher after a string of earnings reports from L

[R]3:45 PM Frankfurt – European markets rebounded from morning losses and traded higher after a string of earnings reports from L’Oreal, Accor, ASML and Novartis. Barclays and four energy traders face regulatory charges of $453 million in the U.S.[/R]

European markets shrugged off morning losses and traded higher and investors looked ahead to comments from Fed Chairman Bernanke in the absence of any domestic economic news.

In London trading, FTSE 100 index increased 0.1% to 6,560 and the DAX index gained 0.3% to 8,226. In Paris, the CAC 40 index added 0.4% to 3,866.

All nine members of the rate setting committee at the Bank of England voted to keep the bond buying program intact at the first meeting held under the newly appointed Governor Mark Carney.

At earlier meetings, Paul Fisher and David Miles had voted in favor of expanding asset purchases by 25 billion pounds.

Poland’s industrial production increased at the fastest pace in June, Central Statistics Office said today. The industrial production increased at 3% annual rate in the month and the increase was driven by 3.7% gain in manufacturing.

Output in mining sector declined 5.6% from a year ago and utilities generation declined 0.1%.

In a separate report, the statistical agency said producer price index eased less than expected 1.5% from a year ago in June.

Stocks in Review

Banks and real estate stocks in the euro zone traded lower today.

Commerzbank declined 3.6% and Deutsche Annington increased 0.5% after the property developer said it has fully exercised its allotment of additional shares to sell 4.5 million shares.

Novartis declined 1.5% after the Swiss drug maker reported lower than expected second quarter earnings.

Accor S.A. fell 0.5% in Paris trading and the French hotel group reported first-half revenues of 2.69 billion euros, lower than 2.72 billion euros in the period a year ago.

ASML Holdings NV rose 1.6% after the chip maker based in Amsterdam reported less than expected second quarter net income but lifted sales outlook for the year.

L’Oreal SA declined 3% after the cosmetic maker reported sales increase of 4% in second quarter largely on the market improvement in North America and new markets in Asia and Latin America.

Barclays Plc declined 0.5% after the U.S. energy regulator demanded $453 million in civil penalties from the lender and four traders for allegedly manipulating electric energy prices in the U.S. western markets including California between 2006 and 2008.

BHP Billiton increased 1.3% in London trading after the mining giant reported 7% increase in global iron ore production in the year to June and 17% jump in the quarter to the month.

The mining company reported seven operations and five commodities production soared to a record high in the year and but petroleum production increased less than expected 6%.