EU Trade Surplus, German Prices Up

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

European stocks edged lower and rising crude oil prices and a rise in wholesale price index in Germany. Price of goods at wholesale level surged 8.1% in May a record gain since February 1982. EU 27 nations registered a trade surplus with US of 80 billion euros in goods and service surplus increased to 11 billion euros. The dollar rose against euro as the prospect of interest rate hike and currency market intervention intensified.

[R]12:00PM New York, 4:00PM Frankfurt – European stocks fall on rising production costs and oil prices and downward revision of growth forecasts by the World Bank.[/R]

Europe market update

European stocks fell to midday on rising oil prices and index of prices in wholesale trade in Germany. The key indices in Germany and France retreated.

The CAC-40 in Paris trading dropped 0.81% in midday to 4,760.59. In Germany the DAX 30-index dropped 44.49 points or 0.65% to 6,771.14. Stocks in Switzerland fell as the Swiss Market index retreated 80.60 points or 1.10% to 7,245.30. The FTSE 100 lost 35.10 points or 0.60% to 5,842.50.

Wholesale price index rises in Germany

Index of prices in wholesale trade in Germany was up 8.1% in May 2008 from a year ago, as reported by the Federal Statistical Office. This was the highest year-on-year rate of price increase since February 1982 when the index rose 8.5%. In April 2008 and in March 2008, the annual rates of increases were 6.9% and 7.1%, respectively.

Germany’s accommodation in internal tourism fall by 4% in April 2008 for overnights. The Federal Statistical Officen reported that the number of overnights in accommodation establishments with 9 or more beds and in tourist campsites in Germany decreased by 4% to 26.8 million in April 2008, compared with the corresponding month of the preceding year.

Rising Industrial production index rise by 1.7% in France between March and April 2008

The April seasonally adjusted index for industrial production excluding energy and agricultural production was 106.4 compared with 104.6 in March and 106.3 in February. This is an increase of 1.7% from March and a loss of 1.6% from February.

EU 27 records a surplus in trade with USA of 80 billion euros in 2007

The EU 27 nations registered trade surplus of 80 billion euros with the U.S. as exports rose and imports declined in the year 2007.

Germany was the largest exporter to the US in 2007 with exports of 73 billion euro or 28% of the total exports to the US, followed by the exports from the United Kingdom with 45 billion or 17%, France with 25 billion or 9% and Italy with 24 billion or 9% of total exports.

Largest importers included the United Kingdom with 39 billion or 22% of total, Germany with 35 billion or 19% of total were and Netherlands with 26 billion or 15% and France with 20 billion or 11% of total imports.

Since the year 2000 EU exports to the U.S. has been increasing and imports from the U.S. are decreasing. Exports in the time period increased to 261 billion euros from 238 billion euros and imports fell to 181 billion from 206 billion. Trade surplus in the period rose to 80 billion from 32 billion.

The main EU27 exports to the U.S. were motor cars, medicine, aircraft and engines, and crude and refined oil, while the main imports were aircraft and engines, motor cars and medicine.

The EU 27 also registered a surplus of 11 billion euros in the services and exported 139 billion of services to the U.S. in 2007.

Gainers and losers

France Telecom led the mid-day gainers in the CAC 40 index stocks with a rise of 2.01% to 18.26 euros followed by gains in BNP Paribas of 1.48% to 60.93 euros, in Societe Generale of 1.07% to 59.93 euros, in Peugeot of 1.04% to 37.83 euros and in Credit Agricole of 0.92% to 14.14 euros.

Veolia Environment led the mid-day decliners in the CAC 40 index with a loss of 5.58% to 43.27 euros followed by losses in Vallourec of 2.99% to 200.35 euros, in ArcelorMittal of 2.71% to 64.42 euros, in Vinci of 2.55% to 43.46 euros and in Lagardere of 2.36% to 44.13 euros.

Among the DAX 30 index shares, Deutsche Lufthansa led the mid-day gainers with a rise of 1.22% to 15.82 euros followed by gains in Volkswagen of 0.94% to 177.28 euros, in SAP AG of 0.53% to 34.13 euros, in BMW of 0.12% to 34.32 and in RWE AG of 0.08% to 82.87 euros.

ThyssenKrupp led the afternoon decliners in the DAX 30 index with a fall of 3.39% to 41.95 euros followed by losses in Infineon Technologies of 1.69% to 5.80 euros, in Deutsche Post AG of 1.55% to 19 euros, in Continental of 1.52% to 67.46 euros and in Henkel KGaA of 1.48% to 29.29 euros.

Precious metals decline

Precious metals fell in London with gold losing $9 to $884.50 an ounce followed by losses in Silver of 19 cents to $17.46 an ounce, in platinum of $38 to $2,015 an ounce and palladium dropped $4 to 423.50 an ounce.

World markets review

In Tokyo Nikkei 225 Index closed lower 160.21 or 1.13% to 14,021.17, in Hong Kong Hang Seng index decreased 1,026.66 or 4.21% closed to 23,375.52. In Australia ASX 200 index lower 154.60 or 2.76% to close 5,437.50. In Malaysia KL Composite index decreased 0.02 or 0.00% closed to 1,230.96.

In South Korea Kospi Index decreased 34.58 or 1.91% to close at 1,774.38, in Thailand SET index closed lower 13.64 or 1.69% to 791.94 and Indonesia JSE Index edged decreased 36.26 or 1.50% to 2,373.82. Sensex index in India decreased 176.85 or 1.17% to 14,889.25.