European Indexes Recover; Danone Offering

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

Stocks in Europe rebounded after better than expected consumer confidence data in the U.S. Danone SA plans to raise 3 billion euros to repay debt. Germany left its first quarter GDP unrevised at a decline of 3.8%.

[R]6:00 PM Frankfurt, Paris – Stocks in Europe rebounded after better than expected consumer confidence data in the U.S. Danone SA plans to raise 3 billion euros to repay debt. Germany left its first quarter GDP unrevised at a decline of 3.8%.[/R]

Germany left its first quarter estimate of Gross Domestic Product a decline of 3.8% from the fourth quarter and 5.3% from the quarter a year ago. The decline was deepest in the four quarterly declines in a row.

German exports in the first quarter declined 9.7% from the fourth quarter and fell at a faster pace than imports.

New orders index in March from February declined 0.8% in EU-16 area and fell 0.7% in EU-27 area. The index was unchanged in February.

French consumer spending in April increased 0.7% and in revised March spending increased 0.6% from the earlier estimate of 1.1% increase. Durable goods sales increased 2.1% and automobile sales increased 3.7%.

Gainers & Losers

Arcandor AG declined 1.7% to 1.74 euros. The owner of the troubled department store chain Karstadt is in discussions with Metro AG for a possible merger and with German government for bail out.

Deutsche Bank declined 2.6% to 48.07 euros after the company chief at the annual general meeting said that the company does not need new capital and is sufficiently capitalized.

ThyssenKrupp increased 2.1% or 35 cents to 17.27 euros after commodities gained in Asian and European trading. The economic stimulus in China and U.S. is expected to lift the demand for base metals.

Danone SA declined 5% or 2.04 euros to 37.58 euros. The company plans to raise 3 billion euros in rights offering to lower its debt.

Nexans SA dropped 5.8% to 41.74 euros after the company estimated first half operating margin between 4.5% and 5% and sales decline of 15%. The company also declared dividend of 2 euros a share. The company at the end of the annual meeting appointed new chief executive Frederic Vincent.

CAC-40 Index Movers

Danone SA led the decliners in the CAC-40 index of 5.1% followed by losses in EADS NV of 2.1%, in Dexia SA of 1.5%, in LAFARGE of 1.3%, Credit Agricole SA of 0.9%.

PSA Peugeot Citroen S.A. gainers in the CAC-40 index with a rise of 4.8% followed by gains in Societe Generale SA of 4.0% in Michelin SCA of 2.7%, in Cap Gemini SA of 2.5%, in GDF Suez SA of 2.2%.

DAX Index Movers

Fresenius SE led the decliners in the DAX index of 1.2% followed by losses in Deutsche Boerse AG of 0.7%.

Daimler AG led gainers in the DAX index with a rise of 4.1% followed by gains in MAN SE of 3.7%, in Hannover Rueckversicherung AG of 2.5%, in Merck KGaA of 2.2%, in Muenchener Rueckversicherungs AG of 2.1% .

Europe Markets Review

In London FTSE 100 Index closed higher 46.43 or 1.06% to 4,411.72, in Paris CAC 40 Index increased 33.93 or 1.05% to close at 3,270.09 and in Frankfurt DAX index higher 67.15 or 1.37% to close at 4,985.60. In Zurich trading SMI decreased 14.97 or 0.27% to close at 5,431.27.