European Stocks Decline, German Exports Rise

123jump.com Staff
09 Jun, 2008
New York City

European market recovered in the morning trading but lost ground after the release of loss at Lehman Brothers. The U.S. banker reported a loss of $2.8 billion and raised $6 billion at $28 per share price, a discount of 13% from Friday closing price. European banks and insurance companies fell.

[R]11:00AM New York, 300PM Frankfurt – European stocks traded mixed and recovered from the Friday’s sell-off sparked by oil price surge./R]

Europe market update

The CAC 40 advanced 12.47 points or 0.14% in the midday trade today to 4,802.23. In Germany the DAX 30-index climbed 11.75 points or 0.17% to 6,815.56. Stocks in Switzerland retreated this afternoon as the Swiss Market index fell 0.56% to 7,345.36. The FTSE 100 lost 10.50 points or 0.18% to 5,896.30.

German exports rise 14%

German exports increase 13.9% in April and imports gained 11.7% from a year ago. Data released by the Federal Statistical Office showed exports of 89.8 billion euro and imports of 71 billion euros. Exports increased 1.2%, while and decreased 2.1% from March of this year.

Turnover in manufacturing up 4.7%

The Federal Statistical Office reported that the manufacturing sector saw a turnover rise in real terms by a working-day adjusted 4.7% in April 2008 (current month, preliminary) compared with April 2007. March data of a rise of 4.1% was unchanged. Domestic turnover increased by 3.2% in the corresponding period, revenue from business with foreign customers increased 6.6%. Sales to euro area countries were 6.4% above the level of the preceding year, while sales to other foreign countries rose 6.9%.

Gainers and losers

Gaz De France led the gainers in the CAC 40 index stocks in the midday trade with a rise of 3.13% to 44.36 euros followed by gains in Suez of 2.58% to 47.94 euros, in Credit Agricole of 2.09% to 14.15 euros, in Air Liquide of 1.39% to 85.75 euros and in Alstom of 1.25% to 161.70 euros.

Saint Gobain led the midday decliners in the CAC 40 index with a loss of 2.28% to 47.93 euros followed by losses in Air France-KLM of 2.07% to 16.03 euros, in Cap Gemini of 1.90% to 42.64 euros, in Schneider Electric of 1.71% to 78.09 euros and in Dexia of 1.63% to 13.84 euros.

Among the DAX 30 index shares, Siemens AG led the gainers this afternoon with a rise of 2.06% to 71.40 euros followed by gains in Hypo Real Estate Holdings of 2% to 20.93 euros, in Volkswagen AG of 2% to 174.68 euros, in Frenesius Medical Care of 1.75% to 35.99 euros and in E.ON AG of 1.38% to 135.95 euros.

MAN AG led the midday decliners in the DAX 30 index with a fall of 3.14% to 87.60 euros followed by losses in Deutsche Bank of 1.89% to 62.91 euros, in Deutsche Lufthansa of 1.88% to 15.67 euros, in Commerzbank AG of 1.81% to 19.54 euros and in Deutsche Borse of 1.61% to 83.95 euros.

Precious Metals Movement

At mid-day, in London, gold lost 20 cents to $904.25 an ounce. Silver fell 9 cents to $17.46 an ounce , platinum lost 22 cents to $2,066 an ounce and palladium gained $2 to $437.00 an ounce.

Lehman Brothers raises $6 billion at a discount

Lehman Brothers expects a loss of $2.8 billion or $5.14 per share for the quarter ended on May 31. The investment broker earned $489 million or 81 cents per share in the first quarter and $1.3 billion or $2.21 per share in the same quarter a year ago. Lehman reported its quarterly results one week early and raised $6 billion.

Lehman expects to report net revenues for the second quarter of fiscal 2008 of negative ($0.7) billion, compared to $3.5 billion for the first quarter of 2008 and $5.5 billion for the second quarter of fiscal 2007. Net revenues for the second quarter of fiscal 2008 reflect negative mark to market adjustments and principal trading losses, net of gains on certain debt liabilities.

Lehman issued common stock and issue non-cumulative mandatory convertible preferred stock offering that has a liquidation preference of $1,000 per share. The stock will be converted to common stock in three years.

Asian markets decline

In Tokyo Nikkei 225 Index closed lower 308.06 or 2.13% to 14,181.38, in Malaysia KL Composite index decreased 17.59 or 1.41% closed to 1,230.98. Market of Hong Kong and Australia were closed today.

In South Korea Kospi Index decreased 23.35 or 1.27% to close at 1,808.96, in Thailand SET index closed lower 11.75 or 1.44% to 805.58 and Indonesia JSE Index edged increased 7.84 or 0.33% to 2,410.08. Sensex index in India decreased 506.08 or 3.25% to 15,066.10.