Europe Rallies In Early Trading

Ivaylo
29 Jun, 2006
New York City

European markets staged a broad-based rally Thursday, with oil and financial blue-chips up front as investors disregarded concerns over inflation ahead of the US Federal Reserve

[R]6:30 AM European stocks rally, led by oil and banks shares.[/R]
European markets traded higher by mid-morning. The U.K. FTSE 100 index increased 0.7% at 5,719, the German DAX Xetra 30 index gained 0.8% at 5,501 and the French CAC-40 index advanced 0.8% at 4,812. On the corporate front, energy and financial stocks led the gainers, with oil companies benefiting from stable crude prices near recent highs of $72 a barrel. Norway’s Statoil gained 2.6%, while Repsol of Spain added 1.1% and Finnish refiner Neste Oil climbed 2.9%. Britain’s BP advanced 1.5% despite facing pressure from the US futures trading regulator, which lodged a complaint to a district court in Illinois alleging propane price manipulation. Financial sector advances came in spite of increasing expectations that the European Central Bank will continue hiking eurozone interest rates, cooling credit demand. But as markets advanced, so too did French insurer Axa by 2.1%, Zurich Financial by 1.8% and Dutch life insurer Aegon by 2.5%.

The August oil contract finished 27 cents higher at $72.19 a barrel, while gold bullion opened Thursday at a bid price of $581.20 a troy ounce, up from $579.95 late Wednesday. The dollar edged down against the European currency. The euro purchased $1.2543 in morning European trading, compared with $1.2550 in New York late Wednesday. The British pound slipped to $1.8163 from $1.8185. The dollar was slightly higher against the Japanese currency, inching up to 116.51 yen from 116.40 yen.

[R]5:15 AM Gold and silver close down ahead of important U.S. economic data.[/R]
The benchmark August gold contract ended $3.40 lower at $581 a troy ounce. During the session, the contract advanced to a $589.40 an ounce but was unable to hold that level as the dollar rose against the euro. July silver pared earlier gains to finish at $10.155 an ounce, down 4 cents on the day. July platinum closed $10.10 lower at $1,178.20 an ounce while September palladium ended down $1.40 at $312.80 an ounce. The most-traded September copper contract advanced 10.10 cents to close at $3.1870 per pound.

The August crude oil contract advanced 27 cents to $72.19 a barrel after trading from $71.60 a barrel and to $72.77 a barrel. July gasoline rose 1.15 cents to $2.2100 a gallon, a new six-week high, after trading in a range of $2.1550 to $2.2100 gallon. July heating oil shed 2.13 cents to $1.9374 a gallon. On the New York Board of Trade, Arabica coffee futures soared with the September contract reaching a three-week high and approaching $1 a pound. July closed up 2.35 cents at 97.70 cents a pound, while September advanced 2.40 cents to 99.10 cents. Futures on raw sugar in foreign ports for July finshed up 0.03 cent at 15.67 cents a pound and October rose 0.01 cent to 16.20 cents a pound.