CPI in Germany Drops, EDF to Raise

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

European market indexes closed higher. Germany reported consumer price index declined in May. Consumers and businesses reported a rise in confidence in France. Steel stocks gained in Frankfurt. EDF plans to raise 1 billion euros.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European market indexes closed higher. Germany reported consumer price index declined in May. Consumers and businesses reported a rise in confidence in France. Steel stocks gained in Frankfurt. EDF plans to raise 1 billion euros.[/R]

Consumer prices in Germany declined in May on weak energy and minerals and metals prices. The CPI index in May declined 0.1% from the month a year ago and is estimated to decline 0.2% from April, according to the data released by Federal Statistics Office in Germany.

The statistics office INSEE in France said that consumer confidence increased in May to the level last seen a year ago and manufacturers’ confidence increased for the second month in a row.

Gainers & Losers

Steel and auto companies closed higher in Frankfurt trading.

ThyssenKrupp AG increased 2.4% to 17.68 euros and Salzgitter AG added 3% to 66.33 euros.

Volkswagen AG declined 3.7% to 214 euros and Daimler AG increased 0.6% to 26.03 euros and BMW increased 3% to 26.17 euros.

Arcandor AG surged 16% to 2.05 euros after German Finance Minister Steinbrueck in a television interview suggested that aid to the retailer should be seriously considered.

Metro AG increased 3.8% to 28.39 euros.

EDF SA increased 1.7% to 33.24 euros after it planned to raise 1 billion in public offering to invest in nuclear plants. The chief executive in a radio interview confirmed the plan to raise capital and estimated that the bonds may have maturity between 4 and 5 years and may yield near 4.5% yield.

JC Decaux SA surged 5.7% to 11.53 euros after the company was awarded nine contracts for bill board advertising in France.

EADS NV increased 5.6% to 11.68 euros after it reaffirmed sales outlook for 2009 and its chief executive hinted that operating profit may be lower than last year.

Earnings Review

Bigben Interactive SA, the distributor of video games said full-year sales rose 17% to €98.5 million from €84.2 million a year ago. Net profit in the year rose 42% to €16.5 million compared to net profit of €11.6 million a year ago.

Bigben Interactive SA, in the last one year traded as high as €8.74 in June 2008 and as low as €4.11 in February 2009. Based on the yesterday’s closing price of €6.60 the company has market cap of €64.54 million.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 3.8% followed by losses in Fresenius SE of 3.0%,in Deutsche Telekom AG of 1.2%,in Hannover Rueckversicherung AG of 1.2%, in K+S AG of 1.1%.

Salzgitter AG led gainers in the DAX index with a rise of 3.8% followed by gains in METRO AG of 3.7%, in Deutsche Post AG of 3.4%, in Bayerische Motoren Werke AG of 2.8%, in ThyssenKrupp AG of 2.7% .

CAC-40 Index Movers

Pernod Ricard SA led the decliners in the CAC-40 index of 1.7% followed by losses in Essilor International SA of 1.7%, in Sanofi-Aventis SA of 1.4%, in DANONE of 1.3%, Air Liquide of 0.3%.

EADS NV gainers in the CAC-40 index with a rise of 5.6% followed by gains in ArcelorMittal of 5.3% in PPR SA of 4.8%, in Carrefour SA of 3.9%, in Michelin SCA of 3.2%.

Europe Markets Review

In London FTSE 100 Index closed higher 4.51 or 0.10% to 4,416.23, in Paris CAC 40 Index increased 24.77 or 0.76% to close at 3,294.86 and in Frankfurt DAX index higher 15.17 or 0.30% to close at 5,000.77. In Zurich trading SMI decreased 11.85 or 0.22% to close at 5,419.42.