European Markets Rise 2%; Italian Auto Sales

Sarla Buch
01 Jul, 2009
New York City

European indexes closed higher after China reported manufacturing expansion. Retailers gained after the release of German retail sales data. Sodexo increased 3.7% after third quarter sales increased 11%. Auto registration in Italy increased 12% in June on government incentives.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European indexes closed higher after China reported manufacturing expansion. Retailers gained after the release of German retail sales data. Sodexo increased 3.7% after third quarter sales increased 11%.[/R]

The German retail sales in May decreased 3.2% in nominal terms and 2.9% from a year ago month. There were only 24 sales day this year in May compared to 25 a year ago.

After adjusting for seasonality, the retail sales in the month increased 0.5% in nominal terms and in real terms increased 0.4%.

Auto registration in Italy increased 12% to 209,315 units in June according to a release from the Transportation Ministry. Italy as in France and Germany provided 1,500 euro tax rebate for cars that are ten years or older and higher incentives for cars that operate on natural gas.

Gainers & Losers

Celesio AG increased 3.7% to 16.96 euros after the company disclosed its plans to launch its pharmacy store chain. The company prefers to launch a chain from the start and not buy the state controlled stores that are privatized in Sweden after it abolished the pharmacy monopoly.

ThyssenKrupp AG increased 3.6% to 18.33 euros after the company has increased prices on its products according to a report in Financial Deutschland.

Heidelberger Druckmaschinen AG, the largest printing press decreased 0.25% after the company is arranging 1.4 billion euros loans with Deutsche Bank, Commerz Bank and KfW Group with the backing of government of 550 million of the loans. The news was first reported by Bloomberg News.

Sodexo, the catering services provider increased 3.7% to 37.93 euros after it reported third quarter sales increased 11% to 3.77 billion euros.

Carrefour SA increased 5.7% to 32.15 euros after the company released a plan to save 4.5 billion euros of cost in three years and also focus on few target markets to improve its performance under new leadership.

Exel Industries SA in Paris trading fell to 1.9% to 26 euros after the industrial spray maker reported third quarter sales decline of 3% to 132.2 million euros.

Vivalis SA increased 20% to 2.5% to 8.28 euros after it raised full year annual revenues outlook.

Europe Markets Review

In London FTSE 100 Index closed higher 91.50 or 2.15% to 4,340.71, in Paris CAC 40 Index increased 76.56 or 2.44% to close at 3,217.00 and in Frankfurt DAX index higher 96.80 or 2.01% to close at 4,905.44. In Zurich trading SMI increased 68.97 or 1.28% to close at 5,472.94.

DAX Index Movers

Deutsche Boerse AG led the decliners in the DAX index of 0.34% followed by losses in Deutsche Bank AG of 0.09%.

Commerzbank AG led gainers in the DAX index with a rise of 17.22%, followed by increase in Metro AG of 6.35%, in Henkel AG & Co. of 5.04%, in Hannover Re AG of 4.12% and in Deutsche Post AG of 3.90%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index with 0.89%.

Carrefour SA gainers in the CAC-40 index with a rise of 5.70% followed by gains in Unibail-Rodamco SA of 5.50%, in Essilor International SA of 5.15%, in Compagnie de Saint-Gobain SA of 3.92% and in Veolia Environnement of 3.86%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 89 increased, 11 declined and 2 were unchanged.

Man Group Plc decliners in the FTSE 100 index with a loss of 5.59% followed by losses in Lloyds Banking Group plc of 2.40%, in Pearson plc of 1.31%, in British Airways Plc of 0.56% and in The British Land Company PLC of 0.52%.

Vedanta Resources plc led gainers in the FTSE 100 index with a rise of 9.86% followed by increase in International Power plc of 6.62%, in Antofagasta plc of 6.30%, in Old Mutual plc of 6.13%, in Eurasian Natural Resources Corporation PLC of 6.11%.