Deutsche Boerse Falls on Weaker Trading

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

European indexes drifted lower on persistent worries in the credit markets and rising inflation in the region. Germany reported a sharp rise in producer price index in May. The index increased at a rate of 6% from a year ago. Separately, Deutsche Boerse reported earnings per share increase of 61% in the first quarter but trading volume so far in the quarter has declined 33% from a year ago.

[R]12:00PM New York, 4:00PM Frankfurt – European stocks traded lower as credit market worries dragged Deutsche Bank and others in the region. Deutshce Boerse fell on lower trading volume.[/R]

Europe market update

European stocks traded mixed in Friday’s mid-day trading session. At the mid-day key index in Germany was lower while in France was higher. Deutsche Boerse fell after it said that trading volume in the first two months of the quarter fell 33% from a year ago.

The CAC 40 gained 0.05% in mid-day to 4,593.58. In Germany the DAX 30-index retreated 9.11 points or 0.14% to 6,713.06. Stocks in Switzerland slipped as the Swiss Market index fell 10.22 points or 0.14% to 7,148.72. The FTSE 100 fell 4.90 points or 0.09% to 5,703.50.

Producer prices rises accelerates in Germany

The Federal Statistical Office, reported that the index of producer prices for industrial products rose 6.0% in May 2008 from the corresponding month of the preceding year after gaining 5.2% in April. The index in May rose 1.0% from Apirl of this year.

German companies are passing higher energy and raw material costs to their customers at increasing rate. The steady rise in inflation at producer price level has accelerated in the European region but stronger euro has kept the rise in inflation in check at least for now.

Gainers and losers

Credit Agricole led the gainers in the CAC 40 index stocks with a rise of 4.32% to 13.75 euros followed by gains in Societe Generale of 1.71% to 57.55 euros, in Air France-KLM of 1.29% to 16.40 euros, in Vallourec of 1.26% to 215.28 euros and in Sanofi-Aventis of 1.23% to 42.46 euros.

Saint Gobain led the decliners in the CAC 40 index with a loss of 3.08% to 40.59 euros followed by losses in Danone of 2.45% to 48.16 euros, in Alstom of 1.30% to 159.80 euros, in Peugeot of 1.29% to 35.09 euros and in Alcatel-Lucent of 1.29% to 4.19 euros

Among the DAX 30 index shares, ThyssenKrupp led the gainers with a rise of 2.70% to 42.28 euros followed by gains in Deutsche Telekom of 1.49% to 10.24 euros, in Deutsche Lufthansa of 1.41% to 15.15 euros, in Continental of 1.33% to 64.08 euros and in Allianz AG of 0.96% to 118.53 euros

Deutsche Borse led the afternoon decliners in the DAX 30 index with a fall of 2.98% to 80.02 euros followed by losses in MAN AG of 1.45% to 80.61 euros, in RWE AG of 1.41% to 79.91 euros, in TUI AG of 1.29% to 15.27 euros and in E.ON AG of 1.26% to 128.04 euros.

Deutsche Boerse reported first quarter earnings rose 61% from a year ago on revenue gain of 19%. Net income in the quarter rose 58% to 304.2 million euros. Trading volume for the period between April and June 16 of this year declined to 7.6 billion in cash market from 11.3 billion a year ago. But derivative contracts rose to 12.7 million in the period from 10.7 million a year ago in 2007.

Precious Metals review

At mid-day in London, gold gained $5.10 at $900 an ounce. Silver gained 11 cents to $17.22 an ounce, platinum gained $14 to $2,056 an ounce and palladium lost $2 to $471 an ounce.