Europe Edges Higher in Thin Trade

Ivaylo
28 May, 2007
New York City

European stock markets edged higher on Monday, buoyed by the robust close in the US on Friday and a strong start to the week in Asia. Trading was light and advances were slim though, with many markets, including London and Frankfurt, closed for public holidays. The FTSE Eurofirst 300 was up 0.1% by mid morning, while the CAC 40 in Paris gained 0.1%.

[R]6:30AM European markets are higher in light trading on Monday.[/R]

European markets were higher in mid-morning trade on Monday. The FTSE Eurofirst 300 was up 0.1% by mid morning to 1,598.52, while the CAC 40 in Paris added 0.1% to 6,060.44.

Advancers

Prospects of a bid war for OMX, the Nordic bourse operator, pushed the stock 6% higher. On Friday, OMX agreed a $3.7 billion takeover by US-based Nasdaq, whose bid for the London Stock Exchange was declined in February.

Millennium BCP, the largest bank in Portugal, rose 2.3% after Keefe, Bruyette & Woods raised its price target, saying that under the current environment of consolidation in the banking sector, BCP would make an attractive break-up takeover candidate.

Spanish tobacco company Altadis was up 1% after reports the UK Imperial Tobacco was set to make an improved offer of more than 50 euros a share.

Safran, the French aerospace and telecoms group, rose 2.7% after announcing late on Friday it was to split its Sagem Communication division into two separate subsidiaries, a mobile telecoms equipment division and a broadband division. The company added it was seeking partnerships for both units.

Decliners

There were no major decliners in mid-morning trade Monday.

Commodities

Crude oil fell in New York on speculation U.S. fuel prices may ease as refiners increase output to meet summer demand and after oil workers in Nigeria ended a two-day strike. Crude oil for July delivery fell as much as 57 cents, or 0.9 %, to $64.63 a barrel, in after-hours electronic trading on the New York Mercantile Exchange. Brent crude oil for July settlement was at $70.21 a barrel, down 48 cents, on the London-based ICE Futures exchange.

Gold for immediate delivery fell as much as 90 cents, or 0.1 %, to $655.10 an ounce. Silver for immediate delivery rose 1 cent to $12.96 an ounce.

Currencies

The dollar traded near a six-week high against the euro on speculation housing and job reports this week will relieve pressure on the Federal Reserve to cut interest rates this year. The dollar traded at $1.3454 per euro in early trade in London from $1.3442 late in New York May 25. The dollar was at 121.70 yen from 121.79 last week.

[R]5:30AM Copper increase lifts industrial metals Friday, gold gains on oil, dollar.[/R]

Gold gained $2 higher to end at $655.30 an ounce on Nymex, while July silver advanced 8 cents to close at $13 an ounce. Copper on the New York Mercantile Exchange picked up 14 cents to finish at $3.3205 a pound.

Crude oil for July delivery surged $1.02 to end at $65.02 a barrel on Nymex. June gasoline futures advanced nearly 5 cents a gallon to settle at $2.4037.

Traders in corn and soybeans weighed conflicting weather forecasts for the Corn Belt this weekend through Tuesday. The July soybean contract advanced 7.2 cents to finish at $8.124 per bushel on the Chicago Board of Trade. Corn for July delivery dropped less than a penny to end at $3.76 a bushel, while July wheat settled up 10 cents at $5.01 a bushel.