European Stocks Advance Mildly

Ivaylo
22 Aug, 2006
Frankfurt

A better-than-expected profit at U.K. house builder Persimmon helped the market too, along with the recovery of Asian bourses and steadier oil prices. The gains were mild however due to thin trading conditions. The U.K. FTSE 100 gained 0.2%, the German DAX 30 index edged up 0.3% and the French CAC 40 index advanced 0.4%.

[R]6:30AM European markets move up slightly on gains in contruction stocks.[/R]
European markets were slightly higher by mid-morning on Tuesday. The U.K. FTSE 100 gained 0.2% at 5,924, the German DAX 30 index edged up 0.3% at 5,810 and the French CAC 40 index advanced 0.4% to 5,122. French building materials company Lafarge advanced 1.3% following a report from the French newspaper La Tribune that its roofing business has been the focus of at least 12 investment funds, as well as the Austrian company Wienerberger.

Swiss holding company Investor gained 2.2% in the wake of its agreement to tender its shares in WM-Data, the IT consultancy group, to Anglo-Dutch group LogicaCMG, which said on Monday it was buying WM-Data. Acciona, the Spanish builder, climbed 1.3% after it reported following the close on Monday, a forecast-beating 38% rise in first-half net profit. French heavy engineering group, Alstom, surged 3.8% after its statement that it had won a lucrative contract to build a coal-fired electricity generating plant in the US.

Oil prices moved slightly Tuesday ahead of Iran''s formal response to a U.N. plan meant to encourage the country to suspend uranium enrichment, although Tehran has already indicated it will not do so. Light sweet crude for September delivery fell 9 cents to $72.36 a barrel. Gold traded higher on Tuesday at $627.50 an ounce, up $5.90 an ounce from Monday''s close of $621.60.

The euro moved slightly down against the U.S. dollar Tuesday after reaching its highest level since June the previous day. The euro bought $1.2881 in early European trading, down from $1.2892 in New York late Monday. The British pound edged up to $1.8938 from $1.8934. The dollar rose to 116.04 Japanese yen from 115.80 yen.

[R]5:00AM Gold and copper rally amid tensions and criticism.[/R]
December gold moved up $13.50 to close at $635.20 a troy ounce on Monday, while September silver advanced 31 cents to end at $12.35 an ounce. October platinum added $18.50 to close at $1,242.10 an ounce, while September palladium gained $10.90 to finish at $345.20 an ounce. The September copper contract rose 8.50 cents to settle at $3.5195 per pound on the NYME.

The front-month September light, sweet crude oil contract settled up $1.31 to $72.45 a barrel. September gasoline shed 3.03 cents to $1.9360 a gallon and September heating oil rose 4.32 cents to $2.035 a gallon. September natural gas ended down 10.7 cents at $6.624 a million British thermal units. September Arabica coffee finished 3.75 cents higher at $1.07 a pound and December gained 3.80 cents to $1.1095. Futures on raw sugar in foreign ports for October settled down 0.04 cent at 12.14 cents a pound while March sank 0.02 cent to 12.82 cents.