European Markets Rise; Fiat, ThyssenKrupp Jump

123jump.com Staff
04 May, 2009
New York City

European stocks closed higher led by a rise in steel and automakers, insurance companies and airlines. The worldwide rally was sparked by the latest read on manufacturing industry suggested expansion in manufacturing in China. ArcelorMittal and Thyssen Krupp surged.

[R]6:00PM Frankfurt and Paris – European stocks closed higher led by a rise in steel and automakers, insurance companies and airlines. The worldwide rally was sparked by the latest read on manufacturing industry suggested expansion in manufacturing in China.[/R]

European stocks closed higher on a worldwide rally. China reported second monthly manufacturing industry expansion lifting trading sentiment and commodities prices around the world. Copper, oil, gold and silver closed higher.

The IW Cologne Institute estimated that the German economy will contract at 4.5% in 2009 and rebound in 2010 at 0.5%.

The Swiss auto parts maker, Quadrant AG surged 27% to Sfr 89 after the company founders and Mitsubishi Plastics reported a bid for the company in cash that valued the company at Sfr 86 per share. The bid is contingent upon the acquisition gathering at least 66.33%.

Steelmakers in Europe surged on the Chinese manufacturing report. Arcelor Mittal and Thyssen Krupp led gainers in Paris and in Frankfurt trading.

Fiat SpA gained 8% after it said that it may spin off its auto division if it acquired General Motors Opel division.

Airlines rebounded after Mexican President said that the national has overcome the recent swine flu. Also Cathay Pacific and Singapore Air suggested that travel bookings have not been affected so far. Air France-KLM Group increased 8.5% on the news.

DAX Index Gainers & Losers

The DAX Index increased 133 or 2.8% to 4,902.45. of the 30 stocks in the DAX index, 25 increased and 5 declined.

Deutsche Telekom led decliners in the DAX index with a loss of 8% followed by losses in Volkswagen AG of 1.8% and in Fresenius Medical AG of 1.7% and in Muenchener Rueckversicherung AG of 0.4%.

Slazgitter AG led gainers in the DAX index with a rise of 8.1% followed by increase in Hannover Rueckversicherung REG of 8%, in MAN AG of 7.5% and in Thyseen Krupp AG of 7.3%.

CAC-40 Index Gainers & Losers

In Paris, CAC 40 Index increased 78.12 or 2.47% to close at 3,237.97.

Arcelor Mittal led gainers in the CAC-40 index with a rise of 12.5% followed by gains in Air France-KLM of 8.5%, in Vallourec of 7.2%, in Renault of 6.9% and in STM Microelectronics of 5.8%.

France Telecom led decliners in the CAC 40 index with a loss of 0.8% followed by losses in Credit Agricole of 0.3%.

Europe Markets Review

In Paris CAC 40 Index increased 78.12 or 2.47% to close at 3,237.97 and in Frankfurt DAX index higher 133.00 or 2.79% to close at 4,902.45. In Zurich trading SMI increased 92.42 or 1.77% to close at 5,318.34. Markets of London were closed today.