Austria, Ireland, Italy Lead Europe in Q3

Mayank Mehta
30 Sep, 2009
New York City

Austria, Ireland and Milan led the regional benchmark index gains in the third quarter. German seasonally September unemployment increased 10,000. Bayer was among the leading decliners on a brokerage downgrade and negative results of the initial trials of anti-breast cancer drug.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – Austria, Ireland and Milan led the regional benchmark index gains in the third quarter. German seasonally September unemployment increased 10,000. Bayer was among the leading decliners on a brokerage downgrade and negative results of the initial trials of anti-breast cancer drug.[/R]

European markets lost their early momentum after the release of manufacturing index data in the U.S. Germany reported a rise in seasonally adjusted unemployment of 10,000 in September according to the latest data from the Federal Labor Agency.

The latest release from the Institute of Supply showed that the business activities index declined to 46.1 in September from 50 in August.

In London FTSE 100 Index closed lower 25.82 or 0.50% to 5,133.90, in Paris CAC 40 Index decreased 18.69 or 0.49% to close at 3,795.41, in Frankfurt DAX index lower 38.36 or 0.67% to close at 5,675.16. In Zurich trading SMI increased 6.46 or 0.10% to close at 6,323.18.

The DAX index added 3.9% in September and soared 18% in the third quarter, its best quarterly performance since 2003 according to data available on Deutsche Boerse. CAC 40 index increased 20.86% in the quarter and the Swiss benchmark index added 17.01%.

The benchmark index in Austria led the gainers in the region with a rise of 25.67% followed by gains of 23.7% in Ireland, 23.1% in Milan, 22% in Belgium and the Netherlands and 20% in Spain.

Gainers & Losers

Alten SA added 4.2% to €18.35 an advanced technology consulting firm said first-half net profit fell 99% to €0.2 million compared to net profit of €29.8 million a year ago.

Areva SA decreased 0.4% to €396.25 after the nuclear reactors builder said that full testing of the new Georges Besse II uranium enrichment plant is now in final phase and is expected to be completed before the end of November.

Arques Industries AG the investment company fell 1.0% to €1.92.

Bayer AG decreased 2.0% to €47.82 after the drugmaker was downgraded to “neutral” from “buy” at UBS AG and reiterated its price target of €52.

CNP Assurances SA the life insurer fell 2.1% to €69.63 after the rating agency Standard & Poor’s lowered its long term financial strength and derivative protection risk to AA- from AA. The news was first reported by Reuters.

Dassault Systemes SA advanced 0.2% to €38.40 after the maker of three-dimensional design software was downgraded to “underweight” from “equal weight” at Morgan Stanley.

Danone SA rose 1.2% to €40.99 after the food processing sector said it will exit its joint venture with China''s top beverage producer Wahaha, settling a long-running dispute that contributed to political tensions between France and China. The food products company agreed to sell 5% stake in ventures to Wahaha.

Electricite de France SA rose 0.9% to €40.78 after the power producer said that the company is in talks to acquire a minority stake in Gazprom OAO''s South Stream gas pipeline project. The pipeline is designed to bring Russian gas across the Black sea to Europe without passing through Ukraine.

Generale de Sante SA fell 1.4% to €13.35 after the private clinic operator was downgraded to “underperform” from “neutral” at Exane BNP Paribas.

Heurtey Petrochem SA the maker of industrial furnaces fell 2.8% to €21.50.

Hochtief AG dropped 1.8% to €51.91 after the construction company was downgraded to “underperform” from “outperform” at Credit Suisse Group AG.

Hypo Real Estate Holding AG fell 1.9% to €1.49 an international real estate financing company said a German government plan to enforce a """"squeeze-out"""" of minority shareholders is the only option for beleaguered company, according to its chief executive Axel Wieandt interview with the Financial Times.

Kuka AG rose 0.8% to €10.48 after the robot maker said that it has appointed Dr. Till Reuter to the executive board and named him chief executive officer effective October 1.

PPR SA increased 3.0% to €87.50 after the French retailer was upgraded to “hold” from “sell” at Royal Bank of Scotland Group Plc.

PSA Peugeot Citroen S.A slipped 0.1% to €21.12.

Societe Generale SA declined 0.07% to €56.35 after the banking group said that it will increase its share capital through the issuance of one new share per ten shares.

Team Partners Group SA surged 10.6% to €1.35 after the computer services company said first-half 2009 net loss declined to €1.59 million compared to net loss of €5.88 million a year ago.

DAX Index Movers

Salzgitter AG led the decliners in the DAX index of 2.76% followed by losses in Bayer AG of 2.55%, in Siemens AG of 2.55%, in Deutsche Bank AG of 2.46%, in BMW AG of 2.36%.

Infineon Technologies AG led gainers in the DAX index with a rise of 5.33% followed by increase in Allianz SE of 2.10%, in K+S AG of 1.17%, in Muenchener Re AG of 0.90%, in Fresenius SE of 0.73%.

CAC-40 Index Movers

Bnp Paribas SA led the decliners in the CAC-40 index of 5.70% followed by losses in Lagardere SCA of 2.81%, in Societe Generale SA of 2.46%, in Alcatel Lucent of 2.36%, France Telecom S.A. of 1.70%.

Ppr SA gainers in the CAC-40 index with a rise of 3.23% followed by gainers in AXA of 2.89%, Eads NV of 2.51%, in Danone SA of 1.68%, in Pernod Ricard SA of 1.04%.