ArcelorMittal, Thyssen Surge in European Rally

Darlington Musarurwa
01 Jun, 2009
New York City

European markets rallied after China reported third monthly manufacturing expansion in a row. The less than expected decline in manufacturing also supported a rise in energy and commodities stocks. Steelmakers, industrials and energy stocks jumped.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European markets rallied after China reported third monthly manufacturing expansion in a row. The less than expected decline in manufacturing also supported a rise in energy and commodities stocks.[/R]

Stocks in Frankfurt and Paris gained on a rally in commodities, metals and industrial stocks in Europe. China manufacturing orders expanded for the third month in a row lifting hopes that demand for commodities will improve and world economy nay recover sooner than anticipated.

Air France – KLM declined 0.5% to 15.77 euros after its flight 447 from Rio de Janeiro, Brazil to Paris, France was reported. French Prime Minister Sarkozy told the families of missing persons that chances of finding anyone on the plane alive are “slim.”

There were 216 passengers and 12 crew members. Of the passengers, 61 are from France, 58 from Brazil and 26 from Germany. Eleven crew members are from France and 1 from Brazil.

The cause of the accident is unknown.

Gainers & Losers

Steelmakers in Frankfurt trading closed higher on a rise in manufacturing in China and less than expected fall in manufacturing index in the U.S. The global rally lifted stocks in metals, industrials and energy linked companies in Frankfurt and in Paris.

ThyssenKrupp AG increased 7.8% to 19.39 euros and Salzgitter AG added 4.5% to 68.95 euros.

Daimler AG surged 8.4% to 28 euros, Volkswagen AG increased 6.8% to 227.45 euros and Porsche SE added 4.8% to 44.91 euros.

ArcelorMittal ((MT)) surged 10% in Paris after steelmakers around the world rallied.

Alstom SA surged 8.7% to 48.41 euros after the company said it plans to buy back 800,000 shares.

Michelin SCA increased 2.9% to 44.04 euros after the two Brazilian executives and chief of Latin America are reported to be on the Air France’s missing flight from Rio de Janeiro, Brazil to Paris, France.

Renault SA surged 9.1% to 29.53 euros as automakers rallied in Europe and Japan. Nissan and Renault through their joint alliance and efforts are targeting to save $2 billion in costs without giving time frame. The news of cost savings was first reported by Dow Jones.

Toll collection system maker, GEA SA (Grenobloise d’Electronique et d’Automatismes) soared 23% to 26.75 euros after first half net income surged three times to 3.06 million euros.

DAX Index Movers

Merck KGaA led the decliners in the DAX index of 0.10% followed by losses in METRO AG of 0.08%.

Daimler AG led gainers in the DAX index with a rise of 8.11% followed by gains in ThyssenKrupp AG of 7.38%, in BASF SE of 6.98%, in Volkswagen AG of 6.93%, in MAN SE of 6.36% .

CAC-40 Index Movers

BNP Paribas SA led the decliners in the CAC-40 index of 1.95% followed by losses in Suez Environnement SA of 0.66%, in Unibail-Rodamco SA of 0.15%.

ArcelorMittal gainers in the CAC-40 index with a rise of 10.02% followed by gains in PSA Peugeot Citroen SA of 9.64% in Renault SA of 9.11%, in Alstom SAof 8.66%, in Compagnie de Saint-Gobain SA of 7.16%.

Europe Markets Review

In London FTSE 100 Index closed higher 88.25 or 2.00% to 4,506.19, in Paris CAC 40 Index increased 101.84 or 3.11% to close at 3,379.49 and in Frankfurt DAX index higher 201.74 or 4.08% to close at 5,142.56. In Zurich trading SMI decreased 0.85 or 0.02% to close at 5,349.74.