Banks Rebound in European Trading

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

European stocks recovered from the mid-day losses after a rise in the U.S. market indexes. UK, Swiss and German market indexes rose 0.7% and led the trading in the region. InBev surged 6% after it offered to buy U.S. based Anhreuser-Busch for $46.3 billion. Anheuser gained 5% but closed 10% below the offered price. Banks in Germany and France closed higher.

[R]3:00PM New York, 9:00PM Frankfurt – European stocks edge higher from mid-day losses.[/R]

InBev NV, the Belgian and Brazilian beer company made an unsolicited offer for Anheuser Busch for $65 per share or $46.6 billion. The offer is at 14% premium from the closing price on Wednesday or 18% from its peak price in October 2002. The combined company will have revenue of $36 billion and Anheuser Busch with nearly 50% of the U.S. market will significantly add to its global footprint.

Anheuser-Busch stock ((BUD)) rose $3 to $61.30 in New York trading and InBev stock jumped 6% or 2.92 euros to 50.21 euros in trading on Brussels, Belgium Exchange.

Europe market update

European stocks recovered ground lost in mid-day trade, the key indices in Germany and France closed higher.

The CAC 40 advanced 0.23% to 4,671.48. In Germany the DAX 30-index gained 46.86 points or 0.70% to 6,697.12. Shares in Switzerland climbed as the Swiss Market index gained 45.09 points or 0.63% to 7,212.39. The FTSE 100 climbed 39.30 points or 0.69% to 5,762.60.

Oil Price Rise

Brent Crude oil futures gained $1.88 or 1.43% to 132.90 a barrel. Oil has been rising though some analysts commented that oil is overvalued. Oil shocks will continue to cause rise in energy costs worldwide.

Gainers and losers

BNP Paribas led the gainers in the CAC 40 index stocks with a rise of 2.26% to 61 euros followed by gains in Alstom of 2.09% to 154.70 euros, in Axa of 2.09% to 20.99 euros, in Dexia of 2.06% to 13.37 euros and in Vallourec of 1.83% to 204.29 euros.

EDF led the decliners in the CAC 40 index with a loss of 5.37% to 65.18 euros followed by losses in Stmicroelectronics of 4.40% to 7.26 euros, in Veolia Environment of 3.06% to 39.16 euros, in Alcatel Lucent of 1.87% to 4.18 euros and in Gaz De France of 1.78% to 42.38 euros.

Among the DAX 30 index shares, Commerzbank led the gainers with a rise of 3.57% to 19.45 euros followed by gains in Siemens AG of 2.97% to 72.87 euros, in BASF SE of 1.65% to 94.48 euros, in Allianz SE of 1.60% to 112.75 euros and in Munchner Ruck of 1.57% to 120.12 euros.

Deutsche Borse led the decliners in the DAX 30 index with a fall of 1.47% to 79.12 euros followed by losses in Deutsche Post of 1.12% to 18.62 euros, in Hypo Real estate Holdings of 0.66% to 20.98 euros, in Metro AG of 0.64% to 45.04 euros and in Merck KGaA of 0.64% to 86.31 euros.

Precious metals rise

At 4:32 PM, in London, gold gained $12.1 cents to $876.25 an ounce. Silver gained 19 cents to $16.58 an ounce, platinum advanced $38 cents to $2,022 an ounce and palladium gained $4 to $430 an ounce.