Tech Stocks Lift European Markets

Ivaylo
25 Jan, 2001
New York City

Strong results from Nokia, Pernod Ricard, Siemens and H&M, as well as robust performance from US markets overnight supported European markets Thursday. Industrial shares led after Siemens posted better-than expected results. Chemical stocks dipped, with shares in Air Liquide leadingthe decliners U.K airline British Airways was also in the red. By mid morning, the FTSE 100 in London climbed 0.2%, Frankfurt Xetra Dax added 0.2%, and the CAC 40 in Paris gained 0.1%.

[R]6:30 AM European markets advance Thursday on strong tech sector.[/R]
European markets were higher Thursday. By mid morning, the FTSE 100 in London climbed 0.2% to 6,324.2, Frankfurt Xetra Dax added 0.2% to 6,761.93, and the CAC 40 in Paris gained 0.1% to 5,643.37.

Advancers

Nokia, the Finnish mobile phone maker, posted a better-than-expected 19% increase in Q4 net profit on strong growth in emerging markets.

Pernod Ricard, the French drinks group, advanced 6.2% after it reported a 7.3% growth in first-half net profit thanks to growth in its prestige brands.

Siemens posted a better-than-expected increase in sales and operating profit in its fiscal first quarter. The shares gained 6%.

Swedish clothing retailer Hennes & Mauritz rose 5.2% after it said that its Q4 pretax profit rose 27%, above the expectations of the analysts for a profit.

Decliners

Air Liquide fell 2.1% after a sharp drop in natural gas prices and the strength of the euro contributed to a 0.9% drop in Q4 sales.

U.K airline British Airways slipped 1.4% after the company said that cabin crew members of the Trade Union will stop work for 48 hours starting Jan. 30.

Oil and gold

Crude oil prices dropped in Asian trading Thursday after rising overnight to a two-week high. Crude oil for March delivery dropped 32 cents to $55.05 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude for March dipped 17 cents to $55.26 a barrel on the ICE Futures exchange in London. Gold opened Thursday at a bid price of $646.57 a troy ounce, up from $641.40 late Wednesday.

Currencies

The dollar fell against other major currencies in European trading Thursday morning. The euro traded at $1.2980, up from $1.2961 late Wednesday. The British pound was quoted at $1.9691, up from $1.9672. The dollar bought 120.56 Japanese yen, down from 120.95.

[R]5:00AM Gold and silver advanced supported by the recovery of oil stocks.[/R]
February gold futures ended up $2.30 at $648.20 a troy ounce on the New York Mercantile Exchange while March silver gained 1.3 cents to settle at $13.273. April platinum finished down $10.10 at $1,173.10 an ounce and March palladium lost $1.20 to $349.15. The most-active March copper contract ended up 2.20 cents at $2.6015 per pound

The front-month March crude oil contract advanced 33 cents to close at $54.37 a barrel. February heating oil also ended 0.76 cent higher at $1.5839 a gallon. Front-month gasoline rose 1.43 cents to $1.4616 a gallon and February natural gas closed down 17.6 cents at $7.421 per million British thermal units.

On the New York Board of Trade, the March Arabica coffee contract finished up 1.30 cents at $1.1695 a pound, with May gaining 1.30 cents to end at $1.2015. Futures on raw sugar in foreign ports for March declined 0.03 cent to close at 10.76 cents a pound, with May down 0.01 cent to 10.93 cents.