German GDP Report Lifts Europe

Ivaylo
24 Aug, 2006
Frankfurt

German Ifo business sentiment declined for a second month in August, but the data were not as bad as expected. Meanwhile, second-quarter GDP growth was confirmed at 0.9%, up from 0.7% in the first quarter. These figures reverberated across European markets and sent Frankfurt Xetra Dax up 0.5%. In Paris, the CAC 40 added 0.3% and only in London the FTSE 100 was flat.

[R]6:30AM European markets got a boost from German economic data.[/R]
European markets were broadly higher by mid-morning on Thursday. Frankfurt Xetra Dax was up 0.5% to 5,802.46, while in Paris, the CAC 40 added 0.3% to 5,099.66 and only in London the FTSE 100 was flat at 5,856.2. Swiss watchmaker Swatch beat market expectations, with first-half net profit rising 23.6 per cent on 13 per cent growth in gross sales.

Banks advanced after reports of consolidation among the Italian lenders. Banca Intesa and Sanpaolo IMI were being advised on a merger of equals helped both stocks higher. The oil sector declined following Wednesday’s oil-price fall that came in the wake of an unexpected increase in US crude stockpiles. Austria’s OMV was down 2%, while Norway’s Statoil fell 1.1%.

Oil prices gained slightly Thursday, a day after a fall brought on by an unexpected increase in U.S. gasoline and crude oil stockpiles. Light, sweet crude for October delivery gained 13 cents to $71.89 a barrel on the NYME. October Brent crude on London's ICE futures exchange rose 26 cents to $72.28 a barrel.

Gold opened Thursday at a bid price of $623.25 a troy ounce, up from $622.20 late Wednesday. The euro slipped against the U.S. dollar Thursday. The euro bought $1.2774 in early European trading, down from $1.2795 in New York late Wednesday. The British pound fell to $1.8903 from $1.8933. The dollar edged up to 116.41 Japanese yen from 116.30 yen.

[R]5:00AM Gold futures hit Wendesday three-session low.[/R]
December gold futures finished $1 lower at $633 a troy ounce. Silver futures held onto gains as the benchmark September contract ended 25 cents higher at $12.515 an ounce. October platinum settled $1.30 lower at $1,236.50 an ounce, while September palladium finished up $3.90 at $346.85 an ounce. The September copper futures shed 2.80 cents to settle at $3.4650 per pound on the NYME.

October light, sweet crude oil ended down $1.34 at $71.76 a barrel. September gasoline fell 7.99 cents to $1.8594 a gallon, its lowest close since March 27. September natural gas closed down 13.3 cents at $6.875 a million British thermal units. On the New York Board of Trade, September Arabica coffee ended down 0.85 cent at $1.0735 a pound while December lost 1.25 cents to $1.1135. Futures on raw sugar in foreign ports for October moved up 0.35 cent to settle at 12.41 cents a pound.