Benz, BMW, PSA Peugeot Sales Fall

123jump.com Staff
07 Jul, 2009
New York City

European markets closed lower on the worries that recovery will be slower and the global economic conditions are expected to remain weak. The worldwide auto sales of Mercedes Benz and BMW declined at a slower pace in June and PSA Peugeot Citroen sales fell 14% in the first half.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower on the worries that recovery will be slower and the global economic conditions are expected to remain weak. The worldwide auto sales of Mercedes Benz and BMW declined at a slower pace in June and PSA Peugeot Citroen sales fell 14% in the first half.[/R]

European markets fell ahead of G-8 summit in Italy and worries that the global recession may be protracted. Banks in Germany rebounded after the media speculation the revised accounting rules will limit disclosed losses.

In Paris CAC 40 Index decreased 33.59 or 1.09% to close at 3,048.57 and in Frankfurt DAX index lower 53.63 or 1.15% to close at 4,598.19.

PSA Peugeot Citroen reported cars and light truck sales fell 14% in the first half to 1.59 million.

Mercedes Benz Cars Group deliveries in June fell 6.7% to 111,300 units and for the first half declined 19%. Sales of BMW vehicles fell 13% from a year ago in June to 127,546.

Gainers & Losers

Banks in Frankfurt trading closed higher on the media reports suggesting that the valuation regulation will allow banks to retain the value of certain assets. The looser assets valuation rules will banks to operate with the current capital and not require raising funds that will dilute shareholders.

Deutsche Bank AG increased 2% to 42.125 euros and Commerzbank AG added 0.9% to 4.84 euros.

Metro declined 2.3% to 34.25 euros and Bloomberg News reported that the retailer is planning to sell five-year euro bonds in an offering managed by Commerzbank and Societe Generale.

Deutsche EuroShop AG declined 3% to 20.65 euros after it completed offering of 3.4 million shares at 19.50 euros a share and raised 67 million euros. The joint bookrunners for the issue were Goldman Sachs and Commerzbank.

Poweo SA declined 2.6% to 15.78 euros after it completed its 75 million euro public offering. The rights offering offered 7 shares for every 16 held that were priced at 15.10 euros a share as announced on June 2. The largest shareholder had agreed to take at least 75% of the offering.

Europe Markets Review

In London FTSE 100 Index closed lower 7.91 or 0.19% to 4,187.00, in Paris CAC 40 Index decreased 33.59 or 1.09% to close at 3,048.57 and in Frankfurt DAX index lower 53.63 or 1.15% to close at 4,598.19. In Zurich trading SMI decreased 24.95 or 0.47% to close at 5,329.20.

DAX Index Movers

Hannover Re AG led the decliners in the DAX index of 4.57% followed by losses in E.ON AG of 3.24%, in Volkswagen AG of 2.84%, in METRO AG of 2.42%, in Renewable Energy Generation Limited of 2.25%.

ThyssenKrupp AG led gainers in the DAX index with a rise of 1.27% followed by increase in Deutsche Bank AG of 1.23%, in Commerzbank AG of 0.93%, in Salzgitter AG of 0.17%, in K+S AG of 0.13%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 3.88% followed by losses in GDF Suez SA of 3.82%, in Air France-KLM of 2.87%, in Alstom SA of 2.86%, in Cap Gemini SA of 2.38%.

ArcelorMittal gainers in the CAC-40 index with a rise of 2.70% followed by gains in BNP Paribas Asset Management of 1.23%, in Michelin SCA of 0.27%, in Electricite de Strasbourg SA of 0.24%, in Bouygues SA of 0.16%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 42 increased, 58 declined and 2 were unchanged.

Man Group Plc decliners in the FTSE 100 index with a loss of 4.00% followed by losses in Fresnillo Plc of 3.24%, in United Utilities Group PLC of 2.60%, in Cable & Wireless plc of 2.33%, in Kingfisher plc of 2.16%.

Bunzl plc led gainers in the FTSE 100 index with a rise of 2.14% followed by increase in Rexam PLC of 2.06%, in Eurasian Natural Resources Corporation PLC of 2.02%, in WPP plc of 1.88%, in Rio Tinto plc of 1.86%.