Earnings Boost Europe

Ivaylo
02 Aug, 2006
Frankfurt

European markets gained ground on Wednesday brushing off the interest-rate rise worries that pressured U.S. markets to a lower finish overnight. Strong earnings outlooks from companies such as Danone and Cadbury Schweppes helped the rise as well as the results from Credit Suisse and BNP Paribas. The U.K. FTSE 100 index gained 0.5%, the German DAX Xetra 30 index rose 0.7% and the French CAC-40 index climbed 0.8%.

[R]6:30AM Upbeat earnings outlooks help Europe to a strong start.[/R]
European markets were higher on Wednesday morning. The U.K. FTSE 100 index gained 0.5% at 5,970, the German DAX Xetra 30 index rose 0.7% at 5,634 and the French CAC-40 index climbed 0.8% at 4,988. British Cadbury Schweppes climbed 3% stating that first-half net profit advanced to 819 million pounds from 237 million pounds on 22.5% revenue growth and in France, Danone gained 2.5% reporting that its first-half profit rose stronger than forecast and it upped its revenue growth view.

In the banking sector, French bank BNP Paribas advanced 2.4% reporting that its second-quarter net profit gained 30.6% Swiss Credit Suisse Group shed 3.5% as it disappointed the market, despite the unexpectedly strong growth after second-quarter profits came only in line with market expectations.

Oil prices rose Wednesday as traders nervously observed a tropical storm in the Caribbean and the fighting in the Middle East, fearing supply threats. Light sweet crude for September delivery added 38 cents to $75.29 a barrel. September Brent gained 43 cents to $76.32 a barrel at London''s ICE Futures exchange.

Gold hit a high of $649.75 an ounce as firm oil prices and a volatile US dollar sparked off speculative buying. The euro was slightly lower against the U.S. dollar Wednesday as markets awaited signals from the European Central Bank on its future interest rate course. The euro bought $1.2813 in early European trading, just below the $1.2817 it bought in New York late Tuesday. The British pound slid to $1.8752 from $1.8758. The dollar was barely lower against the Japanese currency, falling to 114.47 yen from 114.52 yen.

[R]5:00AM Gold rushes to two-week high Tuesday due to weak dollar, rising oil.[/R]
Most-traded December gold ended $12 higher at $658.80 a troy ounce. During the session the contract broke to a high of $659.30 an ounce. September silver advanced to a high of $11.81 an ounce, before finishing at $11.74 an ounce, up 37 cents on the day. October platinum closed up $16.90 at $1,258.50 an ounce. Copper futures failed to take out Monday''s peak of $3.6550 but ended higher on the day, due to possible supply disruptions. The most-traded September contract finished up 2.3 cents at $3.5930 per pound.

September light, sweet crude-oil contract finished up 51 cents at $74.91 a barrel. September gasoline ended up 6.44 cents at $2.2762 a gallon and September heating oil added up 4.28 cents at $2.0804 a gallon. September natural gas shed 63.7 cents to settle at $7.574 a million British thermal units. On the New York Board of Trade, September Arabica coffee futures settled 1.05 cent lower at 98.30 cents per pound. October futures for raw sugar in foreign ports ended down 0.01 cent at 14.90 cents a pound.