European Indexes Look Beyond Greece and Trade at 7-Year High

Nigel Thomas
18 Feb, 2015
New York City

Eni net loss widened to

[R]4:00 PM Frankfurt – Eni net loss widened to €2.3 billion after production declined 39%. Credit Agricole net dropped 7% from a year ago to €2.3 billion. Carlsberg profit tumbled 19%. Vivendi received €3.9 billion offer for its 20% stake in Numericable.[/R]

European market indexes traded at a seven-year high on the hopes that Greece debt talks will produce a positive outcome as early as this week.

Expectations ran high on trading desks of London and Frankfurt that Greece will seek an extension of loan and meet the demands laid out by international creditors.

After a month of tense negotiation between Greek leaders and euro zone finance and political leaders, Greece is expected to ask for additional loan of 7 billion euros without rollback of austerity measures.

However, market sentiment can change quickly if Greece fails to meet the demand laid out by the IMF and European Central Bank. There are still more than 50% chance that Greece will push for additional loan without the austerity measures, as stressed by Greece’s finance and prime ministers.

In London trading, FTSE 100 index slid 0.2% or 16.38 to 6,881.75 and in Frankfurt the DAX index gained 0.4% or 41.09 to 10,936.71.

In Paris, CAC 40 index jumped 0.8% or 37.46 to 4,791.45.

Eni SpA jumped 2.8% to €16.16 after the Italy-based oil and gas producer reported revenues in the fourth-quarter ending in December declined 10% to €26.83 billion from €29.83 billion a year ago period.

Net loss in the quarter widened from a year ago to €2.34 billion compared to €647 million and diluted loss per share increased to €0.65 from €0.18.

The company said operating profit in the quarter from exploration and production division declined 38.8% and operating income from gas and power segment dropped to €108 million from €341 million a year ago period.

Credit Agricole SA climbed 6.3% to €12.73 after the France-based bank and insurance company reported revenues in the year ending in December dropped 1.1% to €15.85 billion from €15.68 billion a year ago period.

Net income in the year declined 6.8% from a year ago to €2.34 billion compared to €2.51 billion and diluted loss per share increased to €0.65 from €0.18.

The bank added in Italy, as of December loan outstanding amounted to €33.3 billion, an increase of 0.8% and deposits amounted to €35.9 billion, mainly due to an increase of new customer inflows of 1.7% in the final quarter of the year.

Carlsberg A/S rose 0.5% to 565 kronor after the Denmark-based beer and soft drink maker said net revenues in the year ending in December edged up 0.2% to 64.51 billion kronor from 64.35 billion kronor a year ago period.

Net profit in the year tumbled 19.4% from a year ago to 4.41 billion kronor compared to 5.47 billion kronor and earnings per share dropped to 28.8 kronor from 35.7 kronor.

Galliford Try Plc jumped 3.7% to 1,420.28 pence after the U.K.-based home builder reported group revenues in the first-half ending in December surged 18% to £1.09 billion from £803.5 million a year ago period.

Net profit in the period soared 15% from a year ago to £34.4 million compared to £29.9 million and diluted earnings per share jumped to 41.3 pence from 36.1 pence.

Vivendi SA gained 0.7% to €20.97 after the France-based pay-television service provider received an offer from Altice SA for the acquisition of its 20% stake in Numericable-SFR at a price of €40 per share, representing a total amount of about €3.9 billion or $4.45 billion.