European Markets Up, German Exports Rise

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

Stocks in Europe close higher after the release of jobless data in U.S. The banks rebounded on the optimism stirred after the U.S. Fed reassured investors about the health of largest banks. Luxottica surged 10% after net fell 22.5%. Commerzbank net loss surged to

[R]6:00PM Frankfurt, Paris – Stocks in Europe close higher after the release of jobless data in U.S. The banks rebounded on the optimism stirred after the U.S. Fed reassured investors about the health of largest banks.[/R]

Stocks in Frankfurt and Paris gained after the U.S. Fed and Treasury reassured investors that banks are healthy and have adequate capital. German exports increased in April, also helped industrial stocks to close higher.

Steelmakers increased on the exports data but automakers declined after BMW reported 24% decline in April sales. Banks in Paris rallied after the release of stress tests results from the U.S. Fed.

MAN AG increased 4.3% to €48.95 and ThyssenKrupp increased 5.7% to €18.23. BMW declined 3.6% to €26.66.

Fresenius SE increased 5.7% to €40 after the company held its annual shareholder meeting today.

Commerzbank AG increased 1.6% to €6.27 after it reported wider than expected loss of €861 million in the first quarter compared to net income of €236 million a year ago quarter. The bank forecasted return profit in 2012 and

The EU approved the bank’s second bailout request of 10 billion among other conditions that included balance sheet shrinkage, sale of assets and not engage in acquisitions till the funds are repaid. The German government offered the state support in exchange of 25% stake in the troubled bank.

BNP Paribas SA increased 1.94% to €45.885 and Credit Agricole SA added 3.16% to €11.74. Banks in Italy also gained. Banca Popolare di Milano increased 6.6%, Credito Emiliano added 6.3%, Banco Popolare SC surged 11%. Midobanca SpA increased 3.8% andn Intesa Sanpaolo SpA surged 3.4%.

Rising energy prices lifted stocks oil explorers. Total SA increased 2.3% to €41.02 and Eni SpA increased 3.5% to €17.26.

DAX Index Movers

BMW led the decliners in the DAX index of 3.51% followed by losses in Adidas AG of 1.51%, in Muenchener Ruechversicherung of 1.26%, in Deutsche Telekom of 0.49%.

Deutsche Bank led gainers in the DAX index with a rise of 7.11% followed by gains in Allianz SE of 6.13%, in ThyssenKrupp AG of 5.69% and BASF SE of 5.21%.

German Exports Decline

German April exports increased 0.7% to €70.3 billion and imports gained 0.8% to €59 billion from March of this year. The exports declined 15.8% and imports fell 11.6% from a year ago as the world economies slowed.

The unexpected rise in the monthly exports surprised economists.

Trade surplus in the month declined to €11.3 billion from €16.8 billion in March 2008 and seasonally adjusted surplus declined to €8.9 billion. For the first three months ending in March trade surplus declined to €26.9 billion from €51.2 billion.

Current account surplus at the end of the quarter fell to €19.3 billion from €49.7 billion.

Exports declined for the fifth month in a row from a year ago and edged up from the previous month for the first time in six months.

Earnings Review

Telecom Italia SpA, Italy’s biggest phone company said first quarter revenues fell 6.7% to €6.79 billion from €7.28 billion a year ago. Net profit in the quarter fell 4.5% to €463 million compared to net profit of €485 million a year ago.

Telecom Italia SpA, in the last one year traded as high as €1.19 in June 2008 and as low as €0.52 in January 2009. Based on the yesterday’s closing price of €0.674 the company has market cap of €18.40 billion.

Commerzbank AG, Germany’s second- largest bank said first quarter net interest income rose 66% to €1.69 billion from €1.02 billion a year ago. Net loss in the quarter was €861 million or €1.02 per diluted share compared to net profit of €280 million or €0.43 per share a year ago.

Luxottica Group SpA, the luxury eyewear maker said first quarter sales fell 6.4% to €1.31 billion from €1.4 billion a year ago. Net income in the quarter fell 22.5% to €80.4 million or €0.18 per diluted share compared to net income of €103.7 million or €0.23 per share a year ago.

Puma AG Rudolf Dassler Sport, the most desirable Sport lifestyle company said first quarter revenues rose 3.6% to €697.4 million from €673.3 million a year ago. Net profit in the quarter fell 94% to €5.6 million or €0.37 per diluted share compared to net profit of €90.1 million or €5.76 per share a year ago.

Repsol YPF SA, Spain’s largest oil company said first quarter net profit in the quarter fell 57% to €516 million or €0.43 per diluted share compared to net profit of €1.21 billion or €1.57 per share a year ago.

CAC-40 Index Movers

STMicroelectronics N.V led the decliners in the CAC-40 index of 4.05% followed by losses in Renault SA of 2.56%, in PSA Peugeot Citroen S.A. of 1.82%, in Unibail-Rodamco SA of 1.52% and in Bouygues SA of 0.91%.

Dexia SA led gainers in the DAX index with a rise of 7.76% followed by gains in Air France -KLM of 6.60%, in Air Liquide of 5.60% and ArcelorMittal of 5.02%.

Europe Markets Review

In London FTSE 100 Index closed higher 56.31 or 1.44% to 4,462.09, in Paris CAC 40 Index increased 61.07 or 1.88% to close at 3,312.59 and in Frankfurt DAX index higher 109.80 or 2.29% to close at 4,913.90. In Zurich trading SMI increased 65.38 or 1.23% to close at 5,391.01.