Europe Focused on Azco Nobel and ICI Deal

Ivaylo
18 Jun, 2007
New York City

European stocks were range-bound early on Monday, with markets intent on merger-and-acquisition activity including Akzo Nobel''''s long-awaited move for rival paints maker Imperial Chemical Industries. The markets had strengthened over the past three sessions, boosted by stabilizing bond yields and a softer reading of U.S. core inflation. The FTSE 100 was steady, the German DAX 30 gained 0.6% and the French CAC 40 edged 0.1% higher.

[R]6:30AM European stocks edge higher in early trading Monday with bid talk in focus.[/R]

European markets were slightly higher by mid-day Monday. The FTSE 100 was steady at 6,733.70, the German DAX 30 rose 0.6% to 8,075.19 and the French CAC 40 rose 0.1% to 6,109.01.

Advancers

BHP Billiton gained 0.8%. The biggest minerin the world advanced, as it has reportedly revived plans for a $40 billion takeover of Alcoa. EADS added 1.5% amid reports that its Airbus unit is on the verge of winning two big orders, a US Airways order for 30 A350s and an Emirates order for 10 A380s.

Decliners

Akzo Nobel shed 1.3% in Holland after its 7.2-billion-pound approach for ICI was rejected. Pearson edged 1.1% lower after a report that it and General Electric are considering a joint offer for Dow Jones the owner of the Journal as well as MarketWatch.

Siemens, largest maker of equipment to make electricity in Germany, slid 1.2% and Telefonica, biggest telephone company in Spain, dropped 1.3%.

Commodities

Crude oil fell from a nine-month high in New York amid some signs violence in Nigeria will ease, allowing the country to restore some lost production. Crude oil for July delivery fell as much as 35 cents to $67.65 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Brent crude oil for August settlement fell 40 cents to $71.07 a barrel on the ICE Futures exchange in London.

Gold for immediate delivery gained as much as $1.91, or 0.3%, to $657.25 an ounce. Silver for immediate delivery rose 6 cents, or 0.4%, to $13.29 an ounce. Copper for delivery in three months on the LME gained $90, or 1.2%, to $7,590 a metric ton.

Platinum gained the most in two weeks after Anglo Platinum of South Africa, the world biggest producer, stopped production at its largest mine following the deaths of five workers in the past two weeks.. Platinum for immediate delivery gained $12, or 0.9%, to $1,294 an ounce. Palladium also advanced $1.50 to $371 an ounce.

Currencies

The U.S. dollar was mostly lower against other major currencies in European trading Monday morning. The euro traded at $1.3406, up from $1.3378 late Friday in New York. The British pound traded at $1.9826, up from $1.9751. The dollar bought 123.40 Japanese yen, down from 123.46.

[R]5:30AM Gold climbs Friday on tamer U.S. inflation, crude oil rallies.[/R]

Gold for August delivery rose $2.70 to settle at $658.70 an ounce on the New York Mercantile Exchange. August silver rose 9.5 cents to finish at $13.32 an ounce.

Industrial metals climbed. Copper advanced 0.6% on the London Metal Exchange, and zinc, aluminum and nickel gained modestly as well. On the Nymex, July copper futures rose 2.5 cents to $3.4175 a pound, boosted by Xstrata pause on copper shipments from a Montreal refinery, and labor unrest in Latin America.

In the energy markets, crude oil and gasoline prices continued their rally over tight U.S. gasoline supplies. Crude oil futures for July delivery rose 35 cents to settle at $68.00 a barrel on the Nymex, its highest finish since September. July gasoline futures advanced 3.54 cents to end at $2.2601 a gallon.

Dryness in the eastern Corn Belt, along with ethanol demand, kept corn above $4 a bushel. On the CBOT, July corn gained 9.50 cents to end at $4.19 a bushel, and soybeans added 19.5 cents to finish at $8.4725 a bushel.