EU Deficit, French CPI Up

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

European stocks diverged in the late evening trading. Inflation in France in May rose 0.5% from April and 3.3% from a year ago on rising food and energy prices. The EU27 external current account recorded a deficit of 23.7 billion euro in the first quarter of 2008, compared with a deficit of 30.4 billion in the first quarter of 2007 and a deficit of 2.8 billion in the fourth quarter of 2007.

[R]9:00AM New York, 3:00PM Frankfurt – European stocks trade mixed despite rising inflation in France and EU27 area current account deficit./R]

Europe market update

European stocks traded mixed at mid-day on rising inflation in France and current account deficit in EU27.

The CAC 40 gained 0.43% in midday to 4,781.62. In Germany the DAX 30-index advanced 17.23 points or 0.25% to 6,788.33. Stocks in Switzerland fell as the Swiss Market index retreated 36.27 points or 0.50% to 7,247.94. The FTSE 100 gained 3.20 points or 0.05% to 5,830.50.

Consumer Price Index in France rise 0.5% in May

The consumer price index in May for all households in France rose by 0.5%. In April the index rose 0.3%. The year-on-year index was up 3.3%.

The price of food, energy and business services are on the rise. The prices of the group “actual rentals, water supply and refuse collection” and of transport and communication decreased. In May 2008, the price index adjusted for seasonal variations was up by 0.4%. The underlying inflation indicator was up 0.1% or 2.0% year-on-year.

Price index for French frequently purchased goods grow 0.2% in May 2008

The price index of frequently purchased goods in food stores in France posted a growth of 0.2%. In April 2008 the index showed a growth of 0.3%. On an annual basis the index gained 0.1% when compared to May 2007.

Prices of frequently purchased goods were up 0.2% in hypermarkets after rising 0.3% in April 2008, and gaining 0.1% in May 2007 as well as in supermarkets up 0.3% in April 2008 and 0.1% in May 2007. The year-on-year change was 5.9% for hypermarkets and 5.0% for supermarkets.

In other outlets, prices of frequently purchased goods increased by 0.4% in May 2008 and unchanged in May 2007. Their year-on-year change was up 6.2%.

EU 27 current account records a deficit of 23.7 billion euros

The EU27 external current account recorded a deficit of 23.7 billion euro in the first quarter of 2008, compared with a deficit of 30.4 billion in the first quarter of 2007 and a deficit of 2.8 billion in the fourth quarter of 2007.

This is a decrease compared to the first quarter of 2007 when the deficit stood at 30.4 billion euros. The external trade in services recorded a surplus of 16.3 billion euros in the first quarter of 2008. The EU15 recorded a current account deficit of 17.6 billion euros in the first quarter of 2008 compared to a surplus of 3.7 billion euros in the first quarter of 2007.

Gainers and losers

EADS led the gainers in the CAC 40 index stocks with a rise of 3.06% to 14.13 euros followed by gains in BNP Paribas of 2.20% to 62.14 euros, in Alcatel - Lucent of 2.06% to 4.45 euros, in Alstom of 1.84% to 158.98 euros and in Vallourec of 1.83% to 202.83 euros.

Veolia Environment led the decliners in the CAC 40 index with a loss of 4.13% to 41.08 euros followed by losses in Suez of 1.91% to 47.08 euros, in Gaz De France of 1.59% to 43.67 euros, in PPR of 1.12% to 80.03 euros and in Danone of 0.72% to 53.36 euros

Among the DAX 30 index shares, Infineon Technologies led the midday gainers with a rise of 3.25% to 6.04 euros followed by gains in Deutsche Bank of 1.71% to 63 euros, in MAN AG of 1.45% to 88.96 euros, in Deutsche Postbank of 1.40% to 61.04 and in Hypo Real Estate Holdings of 1.33% to 21.35 euros.

TUI AG led the afternoon decliners in the DAX 30 index with a fall of 1.55% to 15.92 euros followed by losses in BMW AG of 1.19% to 33.95 euros, in ThyssenKrupp of 0.79% to 133.30 euros, in E.ON of 0.77% to 133.30 euros and in Merck KGaA of 0.50% to 87.16 euros.

Precious Metals Movement

At mid-day, in London, gold gained $5.40 to $874.25 an ounce. Silver gained 1 cent to $16.94 an ounce, platinum advanced 32 cents to $2,026 an ounce and palladium gained $4 to $427 an ounce.

World markets review

In Tokyo Nikkei 225 Index closed higher 162.31 or 1.16% to 14,183.48, in Hong Kong Hang Seng index decreased 47.92 or 0.21% closed to 23,327.60. In Australia ASX 200 index higher 29.80 or 0.55% to close 5,467.30. In Malaysia KL Composite index decreased 1.68 or 0.14% closed to 1,229.28.

In South Korea Kospi Index increased 7.29 or 0.41% to close at 1,781.67, in Thailand SET index closed lower 0.28 or 0.04% to 791.66 and Indonesia JSE Index edged increased 0.97 or 0.04% to 2,374.78. Sensex index in India increased 296.07 or 1.99% to 15,185.32.