Financials Lead European Markets Lower

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

European markets closed lower as banks and financials faced headwinds. Miners and commodities linked stocks gained in Germany and in UK. German retailers report weak sales in the seven months to July. Adidas and Puma gained. Areva increased after it completed 7-year bond offering.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower as banks and financials faced headwinds. Miners and commodities linked stocks gained in Germany and in UK. German retailers report weak sales in the seven months to July.[/R]

Stocks in continental Europe decreased but in UK gained as miners advanced. German retailers’ sales in the seven months to July decreased 1.7% to €221.7 billion according to the industry association.

In London FTSE 100 Index closed higher 82.34 or 1.6% to 5,124.47, in Paris CAC 40 Index decreased 17.84 or 0.51% to close at 3,458.53 and in Frankfurt DAX index lower 64.01 or 1.18% to close at 5,353.01. In Zurich trading SMI decreased 27.87 or 0.47% to close at 5,911.91.

Gainers & Losers

Arcandor AG surged 22.5% to €0.50 after the retailer said that has completed the sale of its stake in Thomas Cook Group plc with the purpose of repaying the corporate group financing.

Aixtron AG rose 1.6% to €15.50 after Goldman Sachs lifted the maker of specialized equipment to produce LED screens price target to €18 from €13 euros.

Adidas AG the global producer of sportswear and sports equipment added 6.2% to €35.77.

Areva SA advanced 1.5% to €411.95 after the builder of nuclear reactors priced €2.250 billion bond issue comprising a €1.250 billion 7-year tranche (bond due in September 2016).

Bayer AG rose 0.4% to €47.52 after the drugs and chemical maker said that its Bayer MaterialScience has signed supply and cooperation contract with Hirtenberger PROSAFE Safety Technology GmbH to supply carbon nanotubes.

Bilfinger Berger AG rose 4.4% to €48.24 after the company was upgraded to “buy” from “sell” at Goldman Sachs.

Infineon Technologies AG the maker of semiconductors fell 0.7% to €3.87.

Industria de Diseno Textil SA the textile industry said first-half revenues rose 6.6% to €4.86 billion from €4.56 billion a year ago. Net profit in the first-half fell 7.6% to €375 million compared to net profit of €406 million a year ago.

K+S AG the maker of potash used in fertilizers added 4.6% to €39.49 and Puma AG rose 3.0% to €226.72.

Safran SA declined 4.5% to €12.31 and Societe Generale SA the banking group rose 3.4% to €51.89.

ThyssenKrupp AG rose 2.0% to €24.44 after the steelmaker plans to dispose of parts of its unprofitable, non military shipbuilding units.

Total SA added 0.1% to €41.65 after the oil producer expects new projects and cost cuts to lift 2010 cash flow and capital expenditure to remain within its $18 billion budget in the current year.

TUI AG fell 2.0% to €7.01 after the tourism sector was downgraded to “reduce” from “hold” at Equinet AG.

Volkswagen AG fell 1.2% to €120.86 after Qatar exercises options.

Zodiac Aerospace SA decreased 4.5% to €25.78 after it said forex gains and acquisitions helped boost full-year sales, although current operating profit rose less than forecast due to weakened demand. Revenue for the year ending in Aug rose 9.4% to €2.2 billion.

DAX Index Movers

SAP AG led the decliners in the DAX index of 1.17% followed by losses in Deutsche Telekom AG of 1.10%, in Merck KGaA of 0.96%, in E.ON AG of 0.60%, in Deutsche Boerse AG of 0.37%.

Adidas AG led gainers in the DAX index with a rise of 5.42% followed by increase in K+S AG of 4.13%, in Commerzbank AG of 3.37%, in Daimler AG of 2.79%, in Deutsche Bank AG. of 2.60%.

CAC-40 Index Movers

STMicroelectronics N.V. led the decliners in the CAC-40 index of 0.50% followed by losses in Total S.A. of 0.28%, in L''Oreal SA of 0.19%.

Societe Generale SA gainers in the CAC-40 index with a rise of 5.70% followed by gainers in Renault of 5.45%, BNP Paribas SA of 5.14%, in Credit Agricole SA of 5.01%, in Dexia SA of 5.00%.