Europe Trades In Positive Territory

Ivaylo
13 Sep, 2006
New York City

The dollar held up positions despite weak trade data. The markets were buoyed by by overnight gains on U.S. markets, earnings news from British defense contractor BAE Systems, M&A speculation in the truck-making sector and stronger technology shares. The U.K. FTSE 100 index rose 0.1%, the German DAX Xetra 30 index advanced 0.2% and the French CAC-40 index increased 0.2%.

[R]6:30AM European stocks traded higher Wednesday, tracking U.S. markets[/R]
European markets were higher by mid-morning on Wednesday. The U.K. FTSE 100 index rose 0.1% to 5,902, the German DAX Xetra 30 index advanced 0.2% to 5,888 and the French CAC-40 index increased 0.2% to 5,134. BAE Systems gained 1% after it said that its first-half net income rose 28%. On the other hand, Safran, the aero engine and telecoms group, plunged 7.6% after first half proforma operating profits fell 35%.

Scania, the Swedish truck company, jumped 8.9% in the wake of confirming MAN AG, its German rival was likely to make a bid. The stock rose 9% on Tuesday. MAN added 2.8%. Investor rose 4.4% following the investment vehicle statement it was willing to sell its Scania stake. Mediaset, private broadcaster, fell 3.5% after it announced its Italian advertising sales target of 2-3% did not seem achievable.

Crude oil for October delivery fell 26 cents to $63.50 in electronic trading on the NYME in London. Gold for immediate delivery dropped $5.88, or 1%, to $581.57 an ounce also in London. The euro was down slightly against the U.S. dollar Wednesday. In morning European trading the euro bought $1.2695, down from $1.2702 in New York on Tuesday. The British pound climbed slightly to $1.8748 from $1.8743 the day before, while the dollar rose to purchase 117.75 Japanese yen from 117.68 in New York.

[R]5:00AM Precious metals fell Tuesday on short-term speculation selling.[/R]
December gold shed $3 to end at $594.30 a troy ounce on the NYME, while December silver gave up 10 cents to $11.14 an ounce. December palladium also fell late in the session, finishing down $3.95 at $312.10 an ounce. However, October platinum managed a $7.90 gain to close at $1,208.50 an ounce. Most-active December copper finished down 4.45 cents at $3.3730 per pound.

October crude oil sank $1.85, to settle at $63.76 a barrel, the lowest close for a front month contract since March 27. October unleaded gasoline closed 4.25 cents down at $1.5521 a gallon. October heating oil ended down 4.57 cents at $1.7597 a gallon. October natural gas lost 9.6 cents to end at $5.574 a million British thermal units. On the New York Board of Trade, September Arabica coffee futures closed down 0.15 cent at $1.0010 a pound. Futures on raw sugar in foreign ports for October advanced 0.14 cent to close at 11.55 cents a pound.