U.S. Payrolls Support Europe

Ivaylo
01 Sep, 2006
Frankfurt

European stocks reported modest gains on Friday ahead of key U.S. economic data, supported by strength in the health care sector after French drug maker Sanofi-Aventis won a patent case for its Plavix blood thinning treatment. The U.K. FTSE 100 index edged up 0.2%, the German DAX Xetra 30 index rose less than one percentage point and the French CAC-40 index gained 0.2%.

[R]6:30AM Europe moves higher ahead of U.S. payroll data.[/R]
European markets were slightly higher by mid-morning on Friday. The U.K. FTSE 100 index edged up 0.2% at 5,917, the German DAX Xetra 30 index rose less than one percentage point to 5,861, and the French CAC-40 index gained 0.2% at 5,176. Sanofi-Aventis, the French drug group, gained 1.4 as the market saw the positive side of a US generic drug judgement. The company won a ruling from a federal judge blocking sales of a generic version of Plavix late Thursday.

German sugar company Suedzucker advanced 2% following its statement that it is planning for an initial public offering of its CropEnergies bioethanol division this year if the stock exchange mood remains in good shape. French electricity group EDF edged up 0.6% after it posted a 41% increase in adjusted first-half net income. Swedish healthcare group Capio AB surged 32% after securing a 15.6 billion Swedish crowns ($2.17 billion) takeover bid from private equity firms Apax Partners and Nordic Capital.

Oil prices advanced slightly Friday on hopes that a current standoff between the West and Iran over the country nuclear program would unlikely result in major sanctions against Iran. Light, sweet crude for October delivery gained 5 cents to $70.34 a barrel on the NYME. Brent crude for October delivery on London''s ICE Futures exchange rose 27 cents to $70.52 a barrel.

The U.S. dollar was mixed against other major currencies in European trading Friday morning. The euro bought $1.2818, up from $1.2806 late Thursday in New York. The British pound bought $1.9036, down from $1.9041. 117.29. The greenback purchased 117.29 Japanese yen, down from 117.33. Gold dealers in London fixed a recommended price of $624.00 at midmorning, up from $619.40 late Thursday.

[R]5:00AM Silver surges on investment demand, gold follows suit.[/R]
On the NYME, December silver climbed 36 cents to end at $13.03 a troy ounce, while December gold futures advanced $8.10 to close at $634.20 an ounce. October platinum climbed $13.70 to settle at $1,251.20 an ounce, while December palladium gained $3.40 to finish at $348.70 an ounce. The most-active December copper closed 10.35 cents higher at $3.4560 per pound.

Oil futures witnessed a choppy session with modest gains Thursday. The October crude contract advanced 23 cents to finish at $70.26 a barrel, after falling to $69.35 a barrel. The September gasoline contract sank 5.15 cents to close at $1.7504 a gallon. September heating oil advanced 0.46 cents to end at $1.9542 a gallon. October natural gas dipped 25 cents to settle at $6.048 per million British thermal units.

On the New York Board of Trade, Arabica coffee ended firmer, supported by industry and speculative buying. Also, funds did some month-end buying and position unwinding before the close. Futures on raw sugar in foreign ports gained with help from of month-end short covering by funds. The October contract finished 0.28 cents higher at 11.80 cents a pound, while March added 0.34 cents to close at 12.70 cents a pound.