European Markets Higher, Asia Closes Up

123jump.com Staff
25 Feb, 2009
New York City

Ambac, the second largest U.S. bond insurer Ambac Financial reported fourth quarter loss of $2.34 billion on higher loan loss reserve. Stocks close higher in Asia and in Europe advance after the Fed Chairman Bernanke assured that U.S. banks will not be nationalized.

[R]9:00AM New York – Stocks close higher in Asia and in Europe advance after the Fed Chairman Bernanke assured that U.S. banks will not be nationalized.[/R]

Stocks in Asia closed up and in Europe traded higher after investors put their faith in the assurance from the Fed Chairman Bernanke. The comments from Bernanke suggested that the U.S. is not prepared to nationalize banks at the expense of shareholders, lifting banks and insurance companies in Europe and in Asia.

In UK banks traded higher after local media reports suggested that the government will insure 500 billion pound bonds and investment in Llyods Banking Group and RBS. The two lending institution controlled by the UK government will increase 20 billion pounds of loans each in exchange for the guarantees.

Hong Kong proposed higher spending in the new fiscal year and incur higher budget deficit to sustain economic growth of more than 2%.

Japan exports in January plunged 45% and recorded largest monthly trade deficit in nearly 28 years.

Accor SA, Europe’s biggest hotel owner said full-year sales declined 4.7% €7.74 billion. Net profit in the full-year fell 35% to €575 million or €2.60 per diluted share compared to net profit of €883 million or €3.92 per share, a year earlier.

Accor SA, in the last one year traded as high as €56.30 in May 2008 and as low as €24.23 in October 2008. Based on the yesterday’s closing price of €29.36 the company has market cap of €6.36 billion.

CNP Assurances SA, France’s largest life insurer said second-half net profit dropped 76% to €157 million compared to net profit of €654 million, a year earlier.

Full year profit slid 40% to €731 million.

CNP Assurances SA, in the last one year traded as high as €84.99 in April 2008 and as low as €44.51 in December 2008. Based on the yesterday’s closing price of €49.66 the company has market cap of €7.37 billion.

Cadbury Plc, the world’s largest confectionery maker said full-year revenues grew 6% to £5.4 billion from £4.7 billion, a year ago. Net profit in the full-year fell 10% to £364 million compared to net profit of £405 million, a year ago.

Cadbury Plc, in the last one year traded as high as 721.00 pence in May 2008 and as low as 445.25 pence in October 2008. Based on the yesterday’s closing price of 526.50 pence the company has market cap of £7.17 billion.

Henkel AG & Co, the German maker of Persil detergent said fourth quarter sales climbed 11% €3.54 billion. Net profit in the quarter rose 0.8% to €249 million or 57 cents per diluted share compared to net profit of €247 million or 57 cents per share, a year earlier.

Europe Markets Review

In London FTSE 100 Index traded higher 46.81 or 1.23% to 3,863.25, in Paris CAC 40 Index increased 39.44 or 1.46% to 2,747.49 and in Frankfurt DAX index traded higher 65.78 or 1.69% to 3,961.53. In Zurich trading SMI increased 39.66 or 0.84% to 4,762.68.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 192.66 or 2.65% to 7,461.22, Hang Seng index in Hong Kong increased 206.56 or 1.61% closed to 13,005.08, CSI 300 index in China higher 2.40 or 0.10% closed to 2,304.25. ASX 200 index in Australia decreased 4.10 or 0.12% closed to 3,327.50. The KL Composite index in Malaysia higher 2.44 or 0.27% closed to 896.51.

The Kospi Index in South Korea increased 3.20 or 0.30% to close at 1,067.08. SET index in Thailand closed higher 2.92 or 0.68% to 434.24 and JSE Index in Indonesia increased 4.24 or 0.33% closed to 1,300.11. The Sensex index in India increased 80.50 or 0.91% closed to 8,902.56.