Europe Edges Higher

Ivaylo
29 Jun, 2007
New York City

European stocks advanced slightly on the final day of the second quarter, with investors giving initial response to a statement from the U.S. Federal Reserve that cautiously acknowledged progress on economic growth and inflation. Traders are wary, though, as there is a host of economic data ahead, including a final reading of first-quarter U.K. GDP, euro-zone inflation, and U.S. core inflation. The German DAX 30 gained 0.2%, the French CAC 40 rose 0.2% and the U.K. FTSE 100 slipped 0.1%.

[R]6:30AM European markets gain slightly on Friday, cautiously reponding to Fed’s decision.[/R]

European markets edged higher on Friday. The German DAX 30 gained 0.2% at 7,937.86, the French CAC 40 rose 0.2% at 6,017.92 and the U.K. FTSE 100 slipped 0.1% at 6,567.30.

Advancers

BT Group advanced 1.7% as according to CEO Ben Verwaayen analysts are underestimating sales growth. U.K. builder Berkeley rose 2.3% after the adjusted profit of the company advanced a faster-than-forecast 12%. Forklift maker Linde rose 3.3% and Swatch was up 2.9% after Deutsche Bank hiked its rating to buy on favorable trends in the watch industry and on margin hopes.

Decliners

Segro tumbled 4% as HSBC cut the property company rating to neutral from overweight. U.K. coal power firm Drax dropped 2.8% after announcing results in line with expectations. Security Land shares slipped 0.8% and British Land fell 1.1%.

Commodities

Oil prices were steady below $70 a barrel Friday after jumping above that mark in the previous session the first time in ten months on concerns about gasoline supplies. Crude oil for August delivery gained 15 cents to $69.63 a barrel in electronic trading on the New York Mercantile Exchange. Gold opened Friday at a bid price of $647.90 a troy ounce, down from $648.80 late Thursday.

Currencies

The U.S. dollar was trading at 123.44 yen midafternoon, up from 123.18 yen late Thursday in New York. The euro rose to $1.3456 from $1.3432. The British pound also climbed slightly to $2.0027.

[R]5:00AM Gold and silver gain Thursday while oil advances on concern of gasoline supplies.[/R]

Gold often trading inverse to the dollar, has a less direct relationship with the price of oil. August gold closed at $650.40, up $5.60 an ounce. Silver rose 16.9 cents to close at $12.379 an ounce on the Nymex. Nickel and tin made gains on the London Metal Exchange. Increasing inventories of nickel and tin held by the exchange pressured prices lower. Copper led the rest of the complex higher with a more than 2% gain. Nymex copper also rose, adding 7.25 cents to end at $3.4295 a pound.

Gasoline for July delivery rose 1.21 cents to settle at $2.2667 a gallon on the New York Mercantile Exchange. Crude oil for August delivery surged to $70.52 then retreated to close up 60 cents at $69.57 a barrel.

Agriculture futures ended mixed on the Chicago Board of Trade. The market is awaiting two reports from the U.S. Department of Agriculture due out before the market opens on Friday. Corn for July delivery lost 4.2 cents to settle at $3.394 a bushel. July soybeans added 6.2 cents to close at $8.096 a bushel, and July wheat rose 3 cents to settle at $6.09 a bushel.