European Stocks Rise

Ivaylo
30 Nov, 2006
New York City

European stocks rose for a second day, led by BP and Royal Dutch Shell and pushed higher by commodity producers, after metal prices gained. BHP Billiton and Rio Tinto Plc advanced. Benchmarks swung between gains and losses before reports today on U.S. jobless claims and personal spending. The U.K. FTSE 100 index advanced 0.3%, the German DAX Xetra 30 index climbed 0.2%, and the French CAC-40 index rose 0.1%.

[R]6:30AM European shares rise in early trading Thursday as oil prices advance.[/R]
European markets were higher on Thursday. The U.K. FTSE 100 index advanced 0.3% at 6,100.50, the German DAX Xetra 30 index climbed 0.2% at 6,375.28, and the French CAC-40 index rose 0.1% at 5,388.28.

Advancers

BHP, the biggest mining company in the world, added 2.1%. BHP said yesterday that demand for metals is strong and it may look for takeover targets. Rio Tinto, the third largest, gained 2.3%. Aluminum and zinc prices rose in London today and gold headed for a second straight monthly gain.

Oil companies Royal Dutch Shell and BP rose more than 1%, and shares in mining companies Xstrata and Antofagasta also traded more than 1% higher.

Sportingbet shares rose 4.3% on Thursday, as the online gambling company recovers from an 88% year-to-date share price decline on a ban in taking payments from the United States. Also, Prudential shares rose 1.2% after it was upgraded to buy from hold at Citigroup, saying that by 2010 it is free cash yield will be well above its U.K. peers, at 7.1% compared to 5.5%.

Decliners

Danone shares traded down 1.1% in Paris after a strong recent run. U.K.-headquartered home improvement retailer Kingfisher lost 2.1% after producing sales figures that showed continued weakness in U.K. operations.

Oil and gold

Crude oil for January delivery was at $62.40 a barrel, down 6 cents, in after-hours electronic trading on the NYME. Gold for immediate delivery in London rose as much as $1.73, or 0.3%, to $638.38 an ounce and in early trading was at $637.90.

Currencies

The U.S. dollar fell against other major currencies in European trading Thursday morning, dropping to its lowest level in 14 years against the British pound. The euro was quoted at $1.3190, up from $1.3156 late Wednesday. The British pound traded at $1.9558, up from $1.9462. The dollar bought 116.26 Japanese yen, down from 116.31.

[R]5:00AM Gold and silver prices fell Wednesday due to profit-taking.[/R]
February gold declined $1.90 to $641.80 a troy ounce on the NYME. March silver lost 5.2 cents to end at $13.76 an ounce. January platinum advanced $1.80 to finish at $1,152.40 an ounce while March palladium fell $1.15 to $327.50 an ounce. Most active March copper shed 1.50 cents to close at $3.1550 per pound.

The January crude oil contract rallied $1.58 as high as $62.57 a barrel, a two-week high.. The contract advaanced $1.47 to end at $62.46 a barrel. December heating oil settled up 6.70 cents at $1.7953 a gallon. December unleaded gasoline advanced 4.40 cents to close at $1.6706 a gallon. December natural gas added 31.2 cents to finish at $8.871 a million British thermal units.

On the New York Board of Trade, December Arabica coffee futures closed 1.80 cents lower at $1.1855 a pound, with most-active March down 1.65 cents at $1.2330. Futures on raw sugar in foreign ports for March settled up 0.37 cent at 12.36 cents a pound, with May up 0.26 cent at 12.27 cents.