Resources Stocks Boost Europe

Elena
04 Sep, 2006
Frankfurt

European stock markets finished higher, boosted by strong gains from resource companies which helped offset some mixed corporate news. Among leading miners, BHP Billiton gained 1.4%, Rio Tinto rose 1.8%, and Anglo American jumped 3.8%. The German DAX 30 closed up 0.6%, the French CAC 40 advanced 0.4%, and London FTSE 100 rose 0.6%.

[R]12:30AM European markets gained on resource stocks.[/R]
European stock markets finished higher, boosted by strong gains from resource companies which helped offset some mixed corporate news. Among leading miners, BHP Billiton gained 1.4%, Rio Tinto rose 1.8%, and Anglo American jumped 3.8%. In corporate news, U.K. defense contractor BAE Systems rose 1.5% on news the company is expected to recommend the sale of its 20% stake in Airbus to co-parent EADS. EADS shares fell 0.9% in Paris. European markets were quiet Monday as Wall Street was closed for Labor Day. The German DAX 30 closed up 0.6%, the French CAC 40 advanced 0.4%, and London FTSE 100 rose 0.6%.

Oil prices slipped below $68 as Iran tension receded. Light crude October delivery fell $1.17 to $68.02 a barrel. London Brent October delivery slipped $1.44 to $67.71. The dollar lost ground versus major currencies. The euro traded at $1.2863, up from $1.2836. The dollar bought 115.89 yen, down from 117.33. The British pound stood at $1.9061, up from $1.9059. European gold prices extended gains. In London the precious metal traded at $624.40, up from $623.20 per ounce. In Zurich gold traded at $626.40, up from $623.10. Silver closed at $12.98, up from $12.78.


[R]9:30AM NY, 7:00 PM IST The Sensex gains in a steady trading and nears 12,000.[/R]
The Sensex on BSE ended 136.19 points higher, or1.16%, to settle at 11,914.21. The turnover on BSE was Rs 2,862 crore. The market-breadth was positive with 1,608 shares that advanced, 918 that declined and 86 shares remained unchanged. From the Sensex stocks, 24 advanced while only 6 declined. The turnover on NSE was Rs 5,691.2 and the index NSE-50 was up 1.2% to 3,476. NSE also reported that 11% of its trade are now conducted online.

The government on Monday allowed duty-free wheat imports by private players to curtail rising prices and augment market supplies but traders believed high global prices would prevent big purchases. Duty-free wheat import shipments of 65,000 tons by private companies are allowed by the Indian government in the next four months.

On the corporate front, Tata Motors led the advancers, rising 3.72% to Rs 895.50. The total sales for August advanced 26.2%, to 45,681 units. Maruti Udyog surged 3%, to Rs 901.50, reaching a high of Rs 906, in the last minute of trading. The other leading advancers included L&T adding 2.15% to Rs 2480, Hindustan Lever gaining1.76% to Rs 243 and Bajaj Auto edging up 1.60% to Rs 2835. Index heavy Reliance Industries gained 0.55%, to Rs 1,128.20. ICICI Bank moved up 1.79% to Rs 620.

Technology stocks were in focus. Infosys Technologies was up 1.26% to Rs 1,834, Satyam Computer added 1.33% to Rs 810.50, TCS climbed 1.52% to Rs 1,014.40, Mphasis edged up 0.82% to Rs 179, Wipro rose 0.58% to Rs 520, Patni Computers advanced 2.35% to Rs 376.80, iGate Global was up 8.73% to Rs 196.20, GTL moved 2.55% ahead to Rs 148.90 and Polaris surged 4.42% to Rs 117.05.

Aluminium producer NALCO rose 0.72%, to Rs 203.90 and Mangalore Refinery and Petrochemical added 2.02%, to Rs 42.85 on issuing tenders to sell naphta, 100-octane reformate and vacuum processed gas oil for October 2006. Petronet LNG soared 4.38%, to Rs 51.20 after it said it formed a joint venture with the Advani Group for building a solid cargo port in Gujarat state.

Hero Honda led the decliners, losing 1.51% to Rs 715.95 after reporting a fall in August sales. Dr Reddy''s was down 0.47% to Rs 739.80 and Ranbaxy lost 0.18% to Rs 414.65, Reliance Communications fell 0.03% to Rs 299.60 and HDFC shed 0.02% to Rs 1,317.05.
United Western Bank rebounded from a low of Rs 10 and traded as high as Rs 18 but closed at Rs 16.50.


[R]7:30AM Asain markets closed higher Monday, led by Japan and Taiwan.[/R]
Asian markets closed higher on Monday. The Nikkei 225 Average advanced 1.39% to 16358.07. Shares of office-equipment maker Canon gained 1.5% while precision equipment maker Nikon surged 4%. Semiconductor-related firms also gained, with Tokyo Electron and Advantest up 2.7% and 2% respectively. Clothing-chain operator Fast Retailing added 2.68% and internet provider Softbank was up 1.92%.

Hong Kong''s Hang Seng ended today’s session up 0.52% at 17513.88. Shares of China Mobile advanced 2.1%, defying brokers’ expectations for a decline after the share went ex-dividend. Taiwan''s Weighted index advanced 1.49% to 6,750.58. Shares of Hon Hai Precision Industry soared 4.2%, upbeat by news Friday that a related unit will be added to Hong Kong''s blue chip industrial index as early as this week. Shares of Taiwan Semi gained 0.5%.

The other major markets finished also in the positive. The Shanghai Composite was up 0.4%, Australia''''s S&P/ASX 200 edged up 0.4% and South Korea''''s Kospi gained 0.5%. Indonesia''''s Jakarta Composite advanced 0.9%, while Malaysia KLSE Composite nudged higher 0.7%.


[R]6:30AM European markets started the week higher on U.S. job data.[/R]
European markets were higher on Monday. The U.K. FTSE 100 index rose 0.1% to 5,954, the German DAX Xetra 30 index gained 0.4% to 5,898 and the French CAC-40 advanced 0.2% to 5,195. In corporate news, French satellite operator Eutelsat advanced 1.3% after it reversed to a fiscal 2006 profit of 30.4 million euros from a fiscal 2005 loss of 52.3 million euros, while U.K. satellite company Inmarsat rose 1.1%, having signed a deal to collaborate with ACeS to offer low-cost hand-held and fixed voice services, initially in the Asian market.

The leading sector, though, was forestry and paper, up 2%, with Stora Enso rising 2.2% and UPM-Kymmene 1.7% higher. Deutsche Telekom advanced 0.2% after the telecoms group announced a restructuring of its management responsibilities at the weekend after the German telecoms group had been forced to cut its growth and profit guidance a month ago.

Crude oil dropped close to $68 a barrel, an 11-week low, as the U.S. summer travel season drew to a close and traders speculated a dispute with Iran about nuclear research may be resolved without reducing oil exports. Crude oil for October delivery fell 88 cents to $68.31 a barrel, while Brent crude oil for October settlement fell $1.10 to $68.05 a barrel on the London-based ICE Futures exchange.

Gold opened Monday at a bid price of $626.60 a troy ounce, up from $623.20 late Friday. The euro started the week up against the U.S. dollar Monday, building on gains from the week before. In morning European trading the euro bought $1.2861, up from $1.2836 on Friday in late trading in New York. The dollar slid to purchase 116.49 Japanese yen from 117.06 on Friday, while the British pound rose to $1.9076 from $1.9059 in New York.