Europe Climbs On Overseas Rally

Ivaylo
22 Jun, 2006
Frankfurt

European stocks rose on Thursday due to strong gains from resource shares and a higher finish to trading on Wall Street that once more gave direction for a market still nervously observing interest-rate direction. The U.K. FTSE 100 index advanced 1%, the German DAX Xetra 30 index added 1.3% and the French CAC-40 index rose 1.1%.

[R]6:30AM European shares gain on overseas rally and resource stocks.[/R]
European markets traded higher in mid-morning session. The U.K. FTSE 100 index rose 1% to trade at 5,723, the German DAX Xetra 30 index advanced 1.3% at 5,573 and the French CAC-40 index added 1.1% at 4,826. Mining shares such as Anglo American Antofagasta, and oil companies including BP and Royal Dutch Shell were among the top gainers in Europe. Allianz announced plans to reduce nearly 7,500 jobs as part of a restructuring plan targeting stronger earnings. The company advanced 1.7%. Lafarge, the French building materials group, advanced 3.3% after it lifted its mid-term targets and said it was considering selling its underperforming roofing business to help boost profits. Deutsche Borse advanced 4.2% and Euronext gained 2.9% as investors digested the latest comments from Euronext’s suitors. John Thain, chief executive of the New York Stock Exchange, denied any possibility of making him abandon his bid for the bourse operator.

U.S. light crude oil for August advanced 64 cents to $70.97 a barrel, putting up nearly a dollar on Wednesday, in a gasoline-led rally. European benchmark Brent advanced 65 cents to $69.82. The dollar fell slightly against the euro. The 12-country currency bought $1.2663, up from $1.2660 Wednesday evening in New York. The British pound advanced on the dollar as well Thursday, rising to $1.8457 from $1.8447. The dollar dropped against the yen, to 114.85 yen from 114.87.

[R]5:30AM Gold advances on energy prices and bargain-hunting.[/R]
August gold climbed $10.50 to $591 an ounce on NYME. July silver ended up 15 cents to $10.42 an ounce. July platinum advanced $25.40 to $1,193.90 an ounce and palladium rose $10.50 at $314.50 an ounce. July platinum hit $1,196, its highest level since also peaking at this price back on June 12. The benchmark September copper contract finished 1.80 cents higher at $3.11 per pound.

Crude oil futures in New York rallied, ending above $70 a barrel for the first time in more than a week. The August crude oil futures contract finished 99 cents up to end at $70.33 a barrel. July gasoline futures added 6.04 cents higher at $2.0660 a gallon. On the New York Board of Trade, July Arabica coffee closed 0.35 cent lower at 95.10 cents a pound. September coffee, falling to a new 9-month low, ended down 0.75 cent at 96.70 cents a pound. Futures on raw sugar in foreign ports climbed to three-week highs. July closed up 0.53 cent at 15.74 cents a pound.