Germany Offers Dollar Bonds; Club Med Up

123jump.com Staff
14 Sep, 2009
New York City

European stocks traded sideways as investors stayed on the sideline on stretched valuations. Schneider Electric signed

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European stocks traded sideways as investors stayed on the sideline on stretched valuations. Schneider Electric signed €1.8 billion credit line. Germany completes its first dollar denominated bond offering of $4 billion.[/R]

Markets in Europe traded sideways in the wake of no economic data. Investors are still cautious on stretched valuations and a strong rally since mid-March.

Germany completed its dollar denominated bond offering of $4 billion as it seeks to widen its investor base to U.S. and Asia. The news was first reported by Bloomberg and confirmed by 123jump.com with three bankers in New York and Frankfurt.

The offering was led by Deutsche Bank, Bank of America and Citigroup.

In London FTSE 100 Index closed higher 7.38 or 0.15% to 5,018.85, in Paris CAC 40 Index decreased 4.28 or 0.11% to close at 3,730.61, in Frankfurt DAX index lower 3.78 or 0.07% to close at 5,620.24. In Zurich trading SMI decreased 7.35 or 0.12% to close at 6,225.64.

Gainers & Losers

BMW AG fell 0.2% to €34.35 after the luxury car maker chief executive Norbert Reithofer said that aggressive cost cutting will help company to beat its own target of $8.7 billion in cost savings by 2012 and new models will also help to support sales.

BNP Paribas SA fell 2.9% to €51.38 after the bank was downgraded to “reduce” from “buy” at Nomura Holdings Inc.

Club Mediterranee SA rose 3.1% to €13.30 after the two French brokers raised price estimates. The resort company last week reported third quarter comparable sales fell 14%. Total sales declined 12.5% to €315 million.

Carrefour SA increased 1.7% to €31.64 after India based Economic Times reported that the large retail store format operator may link up with Future Group of India that operates several retail formats including Big Bazaar.

Deutsche Bank AG declined 2.5% to €48.47 and Deutsche Postbank AG fell 4% to 24.10 after latter bank was downgraded at Keefe, Bruyette & Woods Inc.

Deutsche Telekom AG slipped 1.5% to €9.39 after the phone company was reported by Sunday Telegraph in London, UK that the company is exploring acquisition of U.S. based wireless carrier Sprint Nextel.

E.ON AG declined 1.9% to €28.34 after the utility said it expects to reach agreement with Electricite de France SA on power capacity swap.

Groupe Partouche SA the casino operator decreased 9.3% to €3.10.

HeidelbergCement AG dropped 4.1% to €41.41 as the company prepares to offer 2 shares for every held in an offering that is still not priced. The proceeds will be used to lower debt.

PSA Peugeot Citroen S.A fell 4.3% to €20.45 after the automaker was downgraded to “underperform” from “outperform” at Credit Suisse Group AG.

Societe Generale SA decreased 3.6% to €49.00 after the French retail banker is said to bid for Kleinwort Benson according to the UK based Sunday Times.

Total SA declined 1.3% to €41.22 said gasoline demand in Europe and the U.S. is expected to fall through to 2020 on weaker economic conditions.

Wienerberger AG fell 4.1% to €14.87 after the brickmaker said that it will issue up to 33.6 million new shares, representing 40% of its existing share capital. The subscription price has been set at €10.0 resulting in gross proceeds of at least €335.8 million for the firm.

DAX Index Movers

Commerzbank AG led the decliners in the DAX index of 1.93% followed by losses in Volkswagen AG of 1.66%, in Deutsche Post AG of 1.22%, in E.ON AG of 1.08%, in Deutsche Telekom AG of 1.00%.

Deutsche Boerse AG led gainers in the DAX index with a rise of 2.73% followed by increase in Adidas AG of 2.40%, in BMW AG of 2.30%, in Metro AG of 2.18%, in Henkel AG & Co. of 1.96%.

CAC-40 Index Movers

Renault SA led the decliners in the CAC-40 index of 2.75% followed by losses in PSA Peugeot Citroen SA of 2.53%, in Credit Agricole SA of 2.48%, in Societe Generale SA of 2.36%, EADS NV of 2.24%.

Vivendi SA gainers in the CAC-40 index with a rise of 2.97% followed by gainers in Pernod Ricard SA of 2.44%, Danone SA of 1.99%, in Carrefour SA of 1.70%, in GDF Suez SA of 1.42%.