Steelmakers Boost Europe

Ivaylo
26 Jun, 2006
New York City

European stocks moved higher by mid-morning on Monday, building on last week

[R]6:30AM Mittal And Arcelor Deal Lift Europe.[/R]
European markets traded higher in mid-morning. The U.K. FTSE 100 index rose 0.2% at 5,701, the German DAX Xetra 30 index advanced 0.2% at 5,543, and the French CAC-40 index gained 0.2% at 4,827. On the corporate front, Mittal Steel and Arcelor deal drew early attention on the steelmaking sector after the companies agreed to an improved offer on Sunday night. The new business, to be called Arcelor Mittal, will have an annual output of more than 100m tonnes of steel. Germany''s ThyssenKrupp advanced 1% and Anglo-Dutch Corus Group rose 1.6%. Diversified mining stocks such as BHP Billiton and Rio Tinto also gained, following a report in The Wall Street Journal stated that Phelps Dodge is set to make a $40 billion bid for Canadian miners Inco and Falconbridge.

Oil inched down on Monday, following signs of improved Iraqi production, but kept near $71 a barrel as demand from the United States and China is still growing despite near-record prices while traders are concerned about supply disruptions. Crude traded down 7 cents at $70.80 a barrel by 0436 GMT, after an increase of 3 cents on Friday that took gains for last week to 1.4%. London Brent crude shed 8 cents to $69.85. The euro opened up against the dollar on Monday, pushing back the U.S. currency from a rally it staged late last week. The euro purchased $1.2566, up from $1.2515 in New York late Friday. The British pound slipped against the dollar, purchasing $1.8237, down from $1.8281 in late trading last week. The dollar was stronger against the Japanese yen, purchasing 116.25, up from 116.08 in New York at the end of last week.

[R]5:00AM Gold and silver rebound on softer dollar.[/R]
August gold finished up $2.60 to $588 a troy ounce on the NYME. July silver climbed 7.5 cents to $10.285 an ounce, while September advanced 7.5 cents to $10.382 an ounce. July platinum was down $9.20 to $1,166.90 an ounce, while October declined $9.70 to $1,179.40. September palladium lost $4.10 to $309.80 an ounce. The benchmark September copper contract ended 10.25 cents higher at $3.1510 per pound.

August crude oil futures settled 3 cents higher at $70.87 a barrel after rising to $71.30 a barrel. July gasoline futures advanced 0.95 cent to $2.1275 a gallon. July heating oil closed at $1.9626 a gallon, down 0.92 cent. On the New York Board of Trade, July Arabica coffee closed 0.60 cent higher at 95.70 cents a pound. Futures of raw sugar in foreign ports for July finished down 0.30 cent at 15.45 cents a pound.