Pharma and Tech Stocks Lift Europe

Ivaylo
29 Aug, 2006
Frankfurt

European markets traded in the positive territory on Tuesday, with U.K. stocks riding higher after a three-day weekend and Bayer stronger after announcing job cuts and an 11% profit rise. U.S. markets closed higher on Monday in a broad-based rally, buoyed by a fallback in the price of oil. In Europe, the FTSE 100 in London rose 0.5%, the Frankfurt Xetra Dax advanced 0.2% and the CAC-40 in Paris added 0.1%.

[R]6:30AM European stocks advanced buoyed by pharma and tech stocks.[/R]
European markets traded higher by mid-morning. The FTSE 100 in London rose 0.5% to 5,909.5, the Frankfurt Xetra Dax advanced 0.2% to 5,864.49 and the CAC-40 in Paris added 0.1% at 5,169.49. Novartis rose 0.3% after Switzerland become the first European country to approve the company’s Lucentis drug as a treatment for a leading cause of blindness in people over 50. Bayer, the German drugs and chemicals group, topped expectations with second quarter core earnings up 14.1%.

The technology sector advanced on the back of news Elpida Memory of Japan predicted sales may double this year on demand for semiconductors in devices such as mobile phones and cameras. Infineon advanced 3%, STMicroelectronics gained 2.3% and ASML, which makes the equipment for making chips, gaining 2.2%. Earnings aside, Commerzbank slipped 1.3% after it said that it will take a 15.3% stake in Russia''s Promsvyazbank by participating in a capital increase at the bank.

Oil prices recovered Tuesday as the market shifted its focus on Iran and other supply issues on signs that tropical storm Ernesto would avoid Gulf of Mexico oil facilities. Light sweet crude oil for October delivery rose 18 cents to $70.79 a barrel on the NYME.

The U.S. dollar fell against other major currencies in European trading Tuesday morning. The euro was quoted at $1.2811, up from $1.2787 late Monday in New York. The British pound was quoted at $1.9008, up from $1.8952. The dollar bought 116.73 Japanese yen, down from 117.13. Gold dealers in London fixed a recommended price of $618.85 at midmorning, down from $623.90 late Monday in New York.

[R]5:00AM Gold futures fell Mnday on retreating energy prices.[/R]
December gold shed $6.90 to $623.90 a troy ounce on the NYME. September silver fell 34.5 cents to end at $12.025 an ounce. October platinum dropped $5.30 to close at $1,227.70 an ounce. September palladium fell $4.35 to settle at 341.45 an ounce. Most-active December copper finished up 1.90 cents at $3.4505 per pound.

October crude oil finished down $1.90 a barrel to $70.61 after hitting an intraday low of $70.15. The September gasoline contract ended down 11.20 cents to $1.7831 a gallon. The September heating oil contract slipped 6.39 cents to $1.9659 a gallon. September natural gas settled down 68.5 cents at $6.472 a million British thermal units. On the New York Board of Trade, September Arabica coffee futures shed 3 cents to $1.0320 a pound. Futures on raw sugar in foreign ports for October closed 0.17 cent down at 12.13 cents a pound.