Third Day Rise in European Indexes

Mayank Mehta
24 Aug, 2009
New York City

European market indexes closed higher for the third day in a row to a new 11-month high. Euro zone industrial order increased 3.1% in June from the previous month but dropped 25.1% from a year ago. Steelmakers, banks and resource stocks closed higher in the region.

[R]9:00 PM Frankfurt, Paris; 3:00 New York – European market indexes closed higher for the third day in a row to a new 11-month high. Euro zone industrial order increased 3.1% in June from the previous month but dropped 25.1% from a year ago. Steelmakers, banks and resource stocks closed higher in the region.[/R]

Industrial orders in Euro zone I June increased 3.1% from May, the largest increase in 19 months according to the latest data from the eurostat. And the orders declined 25.1% from a year ago.

Excluding the transportation equipment, orders increased 1.9% from May and fell 26.7% from a year ago.

The European market indexes gained for the third day in a row in the region and the benchmark indexes in France and Germany surged to 11-month high and in UK closed at 10-month high.

In London FTSE 100 Index closed higher 45.34 or 0.93% to 4,896.23, in Paris CAC 40 Index increased 36.36 or 1.01% to close at 3,652.17 and in Frankfurt DAX index higher 57.01 or 1.04% to close at 5,519.75. In Zurich trading SMI increased 54.59 or 0.89% to close at 6,194.39.

Gainers & Losers

Industrial companies edged higher after the monthly report in industrial orders.

MAN SE, the truck and industrial logistics equipment maker increased 5.2% to 53 euros and Demag Cranes AG increased 0.9% to 2176 euros.

Steelmakers also edged up. ThyssenKrupp AG increased 1.1% to 24.68 euros and Salzgitter AG 2.5% to 69.70 euros. Arcelor Mittal increased 2.6% to 26.21 euros and Vallourec SA, the maker of steel tubes increased 2.2% to 110.40 euros.

A sharp rise in nickel prices and a recommendation from Nomura lifted the ferronickel maker Eramet SA 11% to 226.55 euros.

Deutsche Bank AG increased 3.1% to 49.60 euros and Bloomberg News reported without citing anyone that the bank is planning to sell perpetual euro bonds for retail investors.

Commerz Bank AG increased 1.6% to 6.02 euros and Muencher Rue surged 3.9% to 105.53 euros.

BASF SE increase 1.8% to 36.65 euros after local media article speculated a possible hostile takeover bid. However, company chief said that such a bid may need 70 billion euros.

Atos Origin SA increased 1.9% to 32.22 euros on the reports that the company was awarded a contract from the French power grid operator RTE.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 2.49% followed by losses in Adidas AG of 1.12%, in Daimler AG of 0.76%, in Fresenius Medical Care AG of 0.46%, in BMW AG of 0.32%.

MAN SE led gainers in the DAX index with a rise of 5.65% followed by increase in Muenchener Rue AG of 4.08%, in Allianz SE of 3.51%, in Deutsche Bank AG of 3.12%, in Salzgitter AG of 2.79%.
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CAC-40 Index Movers

PPR SA led the decliners in the CAC-40 index of 0.61% followed by losses in Carrefour SA of 0.30%, in LVMH Moet Hennessy Louis Vuitton SA of 0.18%, in L''Oreal SA of 0.11%, in Renault SA of 0.06%.

Bouygues SA gainers in the CAC-40 index with a rise of 5.94% followed by losses in Compagnie de Saint-Gobain SA of 4.41%, in Lafarge SA of 4.33%, in EADS NV of 3.58%, in ArcelorMittal of 2.56%.