European Stocks Mixed

123jump.com Staff
09 Mar, 2009
New York City

European markets traded mixed after different sets of economic news generated mixed market sentiment. The ECB President, Jean Claude Trichet, today said the global economy may pick up in response to recent stabilization measures. The World Bank predicted first economic global shrink since the WW II.

[R]1:00PM New York, 6:00 Frankfurt – European stocks trade mixed; DAX gains as CAC 40 falls.[/R]

Stocks in Europe traded mixed after different sets of economic news generated mixed market sentiment.

The European Central Bank (ECB) President, Jean Claude Trichet, today said the global economy may pick up in response to recent stabilization measures.

The World Bank on the other hand confirmed growing recession fears saying the global economy will contract for the first time since World War II this year. Warren Buffett, Chairman of Berkshire Hathaway and widely followed investor said in a television interview that economy has “fallen off a cliff.”

Adidas AG rose 2.6% in Frankfurt trading after Bank of America raised its outlook on the company on the strength of its company earnings.

Walter Kielholz announced he would resign as Chairman of troubled Credit Suisse to focus on reinsurer, Swiss Re, which he is tipped to chair.

Market sentiment

In Frankfurt trading the DAX 30 Index recovered from two days of losses and gained 0.7% or 26.62 to 3,692.03.

Of the DAX index shares, 17 gained and 13 lost.

Deutsche Postbank AG led advancers with a gain of 9.4% followed by gains in Deutsche Bank RG of 4.8%, in Adidas AG of 2.6%, in Bayer AG of Merck KGAA of 2.6% and Siemens AG –REG of 2.2%.

Infineon Tech led decliners with a loss of 3.9% followed by losses in Deutsche Lufthansa AG of 2.2%, in Man AG of 2%, in Meunchener Rueckversicherungs AG of 1.5% and Beiersdorf AG of 1.4%.

In Paris trading the CAC 40 declined 0.6% to 2,520.41.

Suez Environnment SA led advancers with a gain of 2.8% followed by gains in Sanofi-Aventis of 2.4%, in Carrefour of 2.1%, in Air Liquide of 1.6% and Air France-KLM of 1.6%.

Insurer Axa led decliners with a loss of 5.6% followed by losses in Veolia Environ. of 4.2%, in Societe Generale of 3.7%, in Saint Gobain of 3.6% and Schneider Electric of 3.2%.

Global Economy to Shrink

The World Bank said the global industrial production in the first half of the year could decline to just about 15% of last year’s annual industrial output due to recession.

It will be the first time the global economy will contract since the World War II.

According to the multilateral lender, the economic contraction will see world trade declining the most in 80 years, with the worst declines recorded in East Asia.

The crisis will leave developing countries with a financing deficit of around $700 billion during 2009.

World Economy May Pick Up -- Trichet

The ECB President, Jean Claude Trichet, today said the global economy could experience an upturn this year in response to the recent as well as economic stabilization measures.

Trichet asserted that a number of economic aggregates – particularly a low oil price and coordinated economic stabilisation measures -- suggested that the global economic crisis may have bottomed out and “having a pick up.”

Recent fire-fighting efforts include interest rate cuts, monetary easing and stimulus packages, which according to Trichet, have been downplayed by investors.

Europe Markets Review

In London FTSE 100 Index closed higher 11.67 or 0.33% to 3,542.40, in Paris CAC 40 Index decreased 15.16 or 0.60% to close at 2,519.29 and in Frankfurt DAX index higher 25.62 or 0.70% to close at 3,692.03. In Zurich trading SMI decreased 3.94 or 0.09% to close at 4,307.67.