European Markets Up, Credit Agricole Repayment

Mayank Mehta
14 Oct, 2009
New York City

European markets gained on the earnings optimism, improved outlook on the global economy and labor markets in the region. Credit Agricole SA plans to repay

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed on the optimism of earnings, improved outlook on the global economy and labor markets in the region. Credit Agricole SA plans to repay €3 billion to France as credit markets improve. Steelmakers increased on a rally in cyclical industrial stocks. ASML Holdings net plunged 73%.[/R]

European markets advanced tracking gains in the U.S. and commodities prices. Metals and resource companies increased after China reported smallest decrease in monthly exports.

The rally in the region was supported by gains in Asia and earnings related optimism in the U.S.

UK jobless claimants increased in quarter ending in August but the increase was less than expected. Nearly 1.6 million are on the benefits roll, record since April 1997. U.S. stocks advanced after better than expected earnings from CSX, JP Morgan Chase and Intel.

In London FTSE 100 Index closed higher 101.95 or 1.98% to 5,256.10, in Paris CAC 40 Index increased 81.28 or 2.14% to close at 3,882.67, in Frankfurt DAX index higher 139.83 or 2.45% to close at 5,854.14. In Zurich trading SMI increased 84.66 or 1.34% to close at 6,405.92.

Gainers & Losers

Air France-KLM the airline decreased 0.6% to €12.57 in volatile trading.

ASML Holding N.V added 0.6% to €21.72 after third quarter sales fell 20% to €555.3 million and net profit fell 73% to €19.7 million or €0.05 a share.

Alstom SA, the environment management technology added 2.8% to €52.27 after the head of power unit said that the company can stand up to competing technologies.

ArcelorMittal increased 5.1% to €27.11 after steelmakers in the region rallied. Rio Tinto increased its iron ore production in the latest quarter to September as Chinese steelmakers sustain their demand for the ore.

Credit Agricole SA advanced 2.2% to €14.78 after the lender said it would repay €3 billion ($4.5 billion) of state support this month.

CropEnergies AG surged 9.4% to €3.23 after the bio-ethanol plant operator said it expects significant operating profit in the second quarter.

Diagnostic Medical Systems the maker of X-ray bone measuring devices for osteoporosis fell 2.9% to €0.66 after the company said it will match 2008 revenues in the current year.

Electricite de France SA climbed 1.5% to €39.80 after the operator of nuclear reactors was upgraded by Morgan Stanley to “overweight” from “equal weight.” The news was first reported by newratings.com.


Freenet AG the mobile-phone operator fell 1.2% to €9.16.

EXEL Industries SA the maker of industrial and agricultural sprays fell 5.6% to €26.91 after annual sales declined 0.8% to €452.70 million.

GDF Suez SA added 1.2% to €29.98 after the natural-gas network operator was upgraded to “overweight” from “equal weight” at Morgan Stanley.

PSB Industries SA the plastics and packaging company fell 0.5% to €17.90.

Risc Group SA fell 5.4% to €0.52 after it reported a net loss of €29.9 million. The Internet security hardware and software distributor earned €5.4 million.

RWE AG fell 0.4% to €62.10 after the utility was downgraded to “equal weight” from “overweight” at Morgan Stanley.

DAX Index Movers

E.ON AG led the decliners in the DAX index of 1.97% followed by losses in Fresenius SE of 1.10%.

BASF SE led gainers in the DAX index with a rise of 6.62% followed by increase in Siemens AG of 4.66%, in Adidas AG of 4.15%, in ThyssenKrupp AG of 3.84%, in K+S AG of 3.73%.

CAC-40 Index Movers

Pernod Ricard SA led the decliners in the CAC-40 index of 3.49% followed by losses in Eads NV of 1.70% in Danone SA of 0.32%, in Veolia Environnement of 0.13%.

Schneider Electric SA. gainers in the CAC-40 index with a rise of 5.40% followed by gainers in ArcelorMittal of 5.14%, Societe Generale SA of 4.66%, in Credit Agricole SA of 4.12%, in Vallourec SA of 4.07%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 79 increased, 22 declined and 1 were unchanged.

International Power Plc decliners in the FTSE 100 index with a loss of 2.85% followed by losses in Thomas Cook Group Plc of 2.36%, in Diageo Plc of 2.05%, in British Sky Broadcasting Group Plc of 1.64%, in United Utilities Group Plc of 1.24%.

Kazakhmys Plc led gainers in the FTSE 100 index with a rise of 9.42% followed by increase in Cairn Energy Plc of 8.62%, in Vedanta Resources Plc of 7.71%, in Xstrata Plc of 7.68%, in Barclays Plc of 6.56%.