Europe Recovers Previous Losses

Ivaylo
11 Aug, 2006
Frankfurt

The losses were inspired by the revealing of the terrorist plot to bomb transatlantic flights. European stocks tracked U.S. markets, which managed to recoup early losses as traders ignored the bomb worries. The FTSE 100 in London added 0.2%, the Xetra Dax in Frankfurt was up 0.55, and the CAC-40 in Paris moved up 0.6%.

[R]6:30AM European markets ignore bomb scare to open in positive territory.[/R]
European markets were higher on Friday morning. The FTSE 100 in London added 0.2% at 5,835.2, the Xetra Dax in Frankfurt was up 0.55 to 5,656.76, and the CAC-40 in Paris moved up 0.6% at 5,006.68. On the corporate front, ThyssenKrupp, the German steel and engineering group, topped expectations with pre-tax profits of ˆ806m, up from ˆ577m a year earlier. The stock eased however on profit-taking, losing 0.8%.

Michelin, gained 3% after the French tyre maker said it was planning to lift its tyre prices by 6-8% in reaction to higher raw material costs. AGF, the French insurer, advanced 2.4% following first-half net profit growth of 33%. Allianz, which owns 58% of AGF, moved up 1%. Fortis, the Belgian-Dutch financial group, rose 1.8% after JP Morgan raised its price target on the stock.

Crude oil prices partially recovered early Friday. Light, sweet crude for September delivery gained 24 cents at $74.24 on the NYME. Gold opened Friday at a bid price of $641.00 a troy ounce, up from $640.70 late Thursday. The U.S. dollar gained slightly on the euro Friday, as markets continued to absorb the thwarted terror plot in Britain.

The euro bought $1.2781, down slightly from $1.2784 in late New York trading. The British pound regained some ground to $1.8937, from $1.8922. The dollar also strengthened against the Japanese currency, to 115.70 yen, from 115.27 after weaker-than-expected Japanese economic growth data set off yen-selling.

[R]5:00AM Gold and silver decline in a sell-off on Thursday.[/R]
December gold ended $16 lower at $646 a troy ounce. Silver lost 46.5 cents to close at $12.105 an ounce. October platinum finished $12.50 lower at $1,250.50 an ounce. September palladium moved $3.95 lower at $322.75 an ounce. September copper settled down 8.55 cents at $3.6245 per pound.

September light, sweet crude oil ended down $2.35 at $74 a barrel, while September gasoline fell 18.33 cents to $1.9889 a gallon. September heating oil shed 8.13 cents to $2.025 a gallon and September natural gas ended down 12.2 cents at $7.529 a million British thermal units. On the New York Board of Trade, September Arabica coffee fell to its lowest price in four sessions, settling down 2.10 cents at $1.0555 a pound. October futures of raw sugar in foreign ports finished down 0.15 cent at 13.89 cents a pound.