German Confidnece Rises; Danone, Volvo Up

123jump.com Staff
23 Oct, 2009
New York City

German business confidence index increased to a 13-month high and UK third quarter gross domestic product shrank 0.4%. Weak oil dragged Total SA, Eni SpA and Repsol. Volvo AB gained 5% after it reported a lower than expected loss. Euro hovered near its highs against the dollar and the pound.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – German business confidence index increased to a 13-month high and UK third quarter gross domestic product shrank 0.4%. Weak oil dragged Total SA, Eni SpA and Repsol. Volvo AB gained 5% after it reported a lower than expected loss.[/R]

European stocks drifted near the close as investors digested a barrage of earnings in the U.S. German business confidence also increased to a 13-month high.

In London FTSE 100 Index closed higher 35.21 or 0.68% to 5,242.57, in Paris CAC 40 Index decreased 12.61 or 0.33% to close at 3,808.24, in Frankfurt DAX index lower 22.68 or 0.39% to close at 5,740.25. In Zurich trading SMI decreased 27.85 or 0.43% to close at 6,378.06.

The survey conducted by the Ifo Institute in Munich said that business climate index increased to 91.9 in October from 91.3 in September. The government stimulus and expectations of rising exports has bolstered the sentiment.

Gainers & Losers

Alcatel Lucent SA added 3.7% to €3.12 after the French telecom group was upgraded to “buy” from “neutral” at Goldman Sachs Group Inc.

BNP Paribas SA advanced 2.2% to €56.32 after the financial services group was upgraded to “buy” from “neutral” at UBS AG.

Compagnie de Saint-Gobain SA climbed 2.4% to €36.74 after the ceramics and plastics group said first nine months sales declined 15% to €28,435 million from €33,435 million a year ago.

Comdirect bank AG rose 0.1% to €6.50 after the online broker was upgraded to “buy” from “neutral” at Sal. Oppenheim Jr. & Cie.

Commerzbank AG the second largest lender in Germany increased 1.8% to €8.25.

Danone SA rose 1.9% to €42.40 after the yoghurt and fresh dairy products maker reported third quarter sales fell 1.8% to €3.78 billion from €3.85 billion a year ago. Total sales increased 4.1% on a like-for-like basis. Sales of the Fresh dairy division sales fell 2.7% to €2.15 billion from €2.21 billion a year ago. Sales for water division fell 8.6% to €670 million from €733 million a year ago.

Escada AG declined 5.8% to €0.64 after the fashion group said the son of the company’s founding family has teamed up with Maurizio Borletti, chairman of La Rinascente, Italy''s leading department store chain to acquire the company.

Hochtief AG the builder added 2.0% to €57.90.

PSA Peugeot Citroen SA increased 1.4% to 23.90 after it estimated less than 10% decline in European sales in 2009. The company expects to revive sales in China by introducing fuel efficient small cars. The company is expected to release revised earnings forecast next month.

ThyssenKrupp AG climbed 2.0% to €24.74 after the Bloomberg reported that the company is moving forward with the planned sale of its Industrieservice as Germany''s largest steelmaker received interest from buyers.

Volkswagen AG added 0.7% to €117.41.

DAX Index Movers

Infineon Technologies AG led the decliners in the DAX index of 4.13% followed by losses in Fresenius Medical Care AG & Co. KGaA of 1.85%, in Muenchener Rue AG of 1.54%, in Deutsche Telekom AG of 1.49%, in BASF SE of 1.44%.

K+S AG led gainers in the DAX index with a rise of 1.89% followed by increase in Deutsche Lufthansa AG of 1.70%, in BMW AG of 1.24%, in MAN SE of 1.22%, in Henkel AG of 1.04%.

CAC-40 Index Movers

STMicroelectronics N.V. led the decliners in the CAC-40 index of 3.00% followed by losses in Essilor International of 2.84% in Pernod Ricard SA of 2.76%, in Accor SA of 2.01%, Carrefour SA of 1.90%.

BNP Paribas SA gainers in the CAC-40 index with a rise of 2.09% followed by gainers in Alcatel Lucent of 1.76%, Renault SA of 1.65%, in Societe Generale SA of 1.60%, in Compagnie de Saint-Gobain SA of 1.51%.