Inflation Rises, European Airlines Higher

123jump.com Staff
30 May, 2008
New York City

European Union area annual inflation is expected to be 3.6% in May according to a flash estimate by European Union Statistical Office released today, higher than April rate of 3.3%. The key indices in Germany and France closed higher after a decline in the crude oil prices. Oil prices continue to fall as Brent crude oil fell $1.18 or 0.93% to $128.07 per barrel. Air France-KLM and Lufthansa rose 4% on the decline in oil prices. Deutsche Postbank rose on talks of takeover.

[R]2:00PM New York, 8:00PM Frankfurt - European stocks edged higher. Crude oil prices fell. Inflation expectations in the region rose./R]

European markets update

The key indices in Germany and France closed higher after a decline in the crude oil prices. Oil prices continue to fall as Brent crude oil fell $1.18 or 0.93% to $128.07 per barrel.

European Union area annual inflation is expected to be 3.6% in May according to a flash estimate by European Union Statistical Office released today. In April 2008 the area annual inflation stood at 3.3%.

The euro area unemployment covering fifteen nations stood at 7.1% in April 2008, unchanged compared to March. In April 2007 the unemployment was at 7.5%. The unemployment rate in 27 nations was stable at 6.7% in April 2008 unchanged compared to March and was lower than the rate of 7.2% in April 2007.

Retail sales in April were in nominal terms 1.5% larger and in real terms 1% smaller than the corresponding month of the previous year reported the Federal Statistical office of Germany.

Gainers and losers

Air France-KLM led the gainers in the CAC 40 index stocks with a rise of 6.11% to 17.19 euros followed by gains in Bouygues of 5.54% to 52.49 euros, in EADS of 4.08% to 15.02 euros, in Renault of 3.12% to 66 euros and in Alcatel Lucent of 2.74% to 4.86 euros.

Arcelormittal led the decliners in the CAC 40 index with a loss of 0.90% to 63.67 euros followed by losses in Credit Agricole of 0.87% to 117.01 euros, in Veolia Environment of 0.75% to 45.81 euros, in Total of 0.63% to 56.09 euros and in L’oreal of 0.31% to 78.22 euros.

Among the DAX 30 index shares, Deutsche Postbank AG led the advancers with a rise of 4% to 62.10 euros followed by gains in Deutsche Lufthasa AG of 3.54% to 16.67 euros, in Infineon Technologies of 2.93% to 5.79 euros, in Commerzbank of 2.81% to 22.69 euros and in BMW AG of 2.53% to 38.07 euros.

Deutsche Bank led the decliners in the DAX 30 index with a fall of 5.21% to 68.73 euros followed by losses in Merck KGaA of 2.53% to 90.36 euros, in Adidas AG of 1.37% to 45.32 euros, in ThyssenKrupp of 1.34% to 43.43 euros and in Volkswagen AG of 1.19% to 177.05 euros.

World Markets Review

In Tokyo Nikkei 225 Index closed higher 214.07 or 1.52% to 14,338.54, in Hong Kong Hang Seng index increased 149.13 or 0.61% closed to 24,533.12. In Australia ASX 200 index lower 54.70 or 0.96% to close 5,654.70. In Malaysia KL Composite index increased 14.28 or 1.13% closed to 1,276.10.

In South Korea Kospi Index increased 10.80 or 0.59% to close at 1,852.02, in Thailand SET index closed higher 3.04 or 0.37% to 833.65 and Indonesia JSE Index edged decreased 2.61 or 0.11% to 2,444.35. Sensex index in India increased 99.31 or 0.61% to 16,415.57.

In London FTSE 100 Index closed lower 14.60 or 0.24% to 6,053.50, in Paris CAC 40 Index increased 38.38 or 0.77% to close at 5,014.28 and in Frankfurt DAX index higher 41.76 or 0.59% to close at 7,096.79. In Zurich trading SMI decreased 30.47 or 0.40% to close at 7,511.29.