European Markets Up, Bilfinger

Mayank Mehta
06 Oct, 2009
New York City

European markets traded higher following the rise in New York markets. Banks in Germany closed higher with Commerzbank and Deutsche Bank leading the gainers. Bilfinger Berger agreed to acquire Austria based MCE Beteiligungs for

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets traded higher following the rise in New York markets. Banks in Germany closed higher with Commerzbank and Deutsche Bank leading the gainers. Bilfinger Berger agreed to acquire Austria based MCE Beteiligungs for €350 million.[/R]

European markets traded higher after central bank officials continue to talk up dollar at a meeting in Istanbul, Turkey and ahead of earnings season.

European banks are expected to deliver higher earnings and resource stocks are likely to reported lower earnings. The retail sector is expected to show rising operating costs and falling operating margins in the region.

Economies in Germany and France are expected to shrink lower than expected in the third quarter as exports decline slows and domestic consumption stabilizes.

In London FTSE 100 Index closed higher 113.65 or 2.26% to 5,137.98, in Paris CAC 40 Index increased 95.20 or 2.59% to close at 3,770.21, in Frankfurt DAX index higher 148.79 or 2.70% to close at 5,657.64. In Zurich trading SMI increased 114.26 or 1.85% to close at 6,277.16.

Gainers & Losers

Adidas AG rose 3.0% to €36.13 after the sporting goods maker was upgraded to “buy” from “reduce” at Nomura Holdings Inc.

Air Berlin Plc increased 3.2% to €3.84 after the airline said revenue increased 4.4% to per available seat kilometer to 6.22 euro cents with 2,708,172 passengers, a decline in passengers of 5.1% compared to the month a year ago.

Aerowatt SA advanced 5.0% to €15.22 after the wind-power station manufacturer and operator said that it has confirmed it expects to report its full year 2009 EBIDTA of €7 million. Previously, the company expected to report earnings between €7 million and €9 million. First half loss narrowed to €226,000.

Bayer AG added 1.9% to €47.20 and the drugmaker said Qlaira®, the oral contraceptive containing estradiol valerate/dienogest significantly reduced menstrual blood loss in a clinical study with women suffering from prolonged menstrual bleeding without organic pathology.

Bilfinger Berger AG added 4.2% to €49.00 after the builder said that it has concluded a purchase agreement of MCE Beteiligungs GmbH, Linz, Austria. The purchase price is €350 million and the acquisition is subject to merger clearance by the European Commission.

Centrotherm Photovoltaics AG rose 1.0% to €31.32 after the solar-cell machinery maker was downgraded to “hold” from “buy” at Citigroup Inc.

Credit Agricole SA rose 3.6% to €14.23 after the bank was upgraded to “buy” from “neutral” at Bank of America.

Dexia SA increased 3.0% to €6.12 after the Belgian-based bank said Societe Generale is in talks with the bank to acquire its 20% interest in French retail network Credit du Nord. After the transaction SG will own 100% of Credit de Nord.

Epigenomics AG advanced 1.4% to €2.90 after the biotechnology company said that it launched in Europe a CE-marked in vitro diagnostic blood test for early detection of colorectal cancer.

Fonciere Sepric increased 1% to €8.55 after the commercial real estate developer reported six-month net loss increased to €4.95 million from €2.8 million a year ago.

Hypo Real Estate Holding AG fell 4.0% to €1.44 after the troubled lender shareholders approved a plan by bank bailout fund Soffin controlled by the German government. The plan squeezes out remaining minority shareholders and the fund acquires the full control of the company.

Imerys SA increased 2.3% to €39.06 after the minerals extraction and processor was upgraded to “hold” from “sell” at Societe Generale SA.

MVV Energie AG the operator of seven German local utilities rose 0.1% to €30.97.

Prismaflex International SA surged 9.6% to €9.20 after the advertising-services company said it has signed an agreement with its banks concerning outstanding debt on September 30. The outstanding balance of €2.4 million will be paid off over four years instead of two.

Rheinmetall AG the defense company added 2.7% to €40.50 after Citigroup revised its target price to €40 from €30.

Schneider Electric SA rose 2.8% to €68.84 after the electric devices maker was upgraded at Jefferies.

Societe Generale SA fell 0.1% to €52.00 after the bank said that it has decided to increase its share capital by issuing new shares of €4.8 billion.

Solon SE rose 1.2% to €9.31 after the maker of accessories for solar energy systems was upgraded to “hold” from “sell” at UniCredit Markets & Investment Banking.

Vallourec SA surged 6% to €115.95 after crude oil prices increased above $71 in London and New York trading.

DAX Index Movers

Fresenius SE led the decliners in the DAX index of 0.98% followed by losses in Fresenius Medical Care AG & Co. of 0.44%.

Salzgitter AG led gainers in the DAX index with a rise of 3.87% followed by increase in Deutsche Bank AG of 3.81%, in Siemens AG of 3.68%, in Commerzbank AG of 3.61%, in Linde AG of 3.36%.

CAC-40 Index Movers

Veolia Environnement led the decliners in the CAC-40 index of 0.89% followed by losses in Vivendi SA of 0.19%.

Credit Agricole SA gainers in the CAC-40 index with a rise of 7.83% followed by gainers in Alcatel Lucent of 6.04%, Vallourec SA of 5.99%, in BNP Paribas SA of 5.61%, in Compagnie de Saint-Gobain SA of 5.36%.