European Markets Rebound; French Auto Sales Up

Mayank Mehta
02 Nov, 2009
New York City

European markets closed higher after trading lower for the last four trading sessions. Manufacturing indexes expanded in the US and UK. French auto sales increased 20.1% in October. Hugo Boss dropped 9% after it reported third quarter net down 25%. Linde AG third quarter net dropped 4.5%.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after trading lower for the last four trading sessions. Manufacturing indexes expanded in the US and UK. French auto sales increased 20.1% in October. Hugo Boss dropped 9% after it reported third quarter net down 25%. Linde AG third quarter net dropped 4.5%.[/R]

European market closed higher after UK and US manufacturing indexes advanced and higher commodities and energy prices lifted resource stocks in the region. Auto sales in France gained 20% in October from a year ago.

In London FTSE 100 Index closed higher 55.08 or 1.09% to 5,099.63, in Paris CAC 40 Index increased 33.01 or 0.91% to close at 3,640.70, in Frankfurt DAX index higher 15.38 or 0.28% to close at 5,430.34. In Zurich trading SMI increased 12.13 or 0.19% to close at 6,297.89.

French auto sales in October increased to 210,140, an increase of 20.1% from a year ago month and for the year increased 4.2% to 1.82 million. The government tax incentive to sell more fuel-efficient cars supported the sales in France.

PSA Peugeot Citroen sales increased 22% to 66,938 and Renault sales surged 35% from a year ago to 56,019 according to the French carmaker’s association CCFA.

Gainers & Losers

Altran Technologies SA added 2.1% to €3.36 after the engineering and technology consulting company said third quarter sales fell 17.1% to €327 million.

BMW AG advanced 0.5% to €33.40 after the maker of luxury cars said the SGL Group have agreed on the establishment of a joint venture for the production of carbon fibers and textile semi-finished products for use in vehicle construction.

CTS Eventim AG the ticketing company rose 0.03% to €34.14.

Deutsche Boerse AG dropped 0.09% to €55.07

Deutsche Lufthansa AG fell 0.4% to €10.45 after the airline said first nine month operating profit €226 million and net loss of €32 million.

Deutsche Post AG declined 0.6% to €11.43 after the mail carrier said it struck a deal with labor union Ver.di on wages and outsourcing policies affecting its 130,000 mail-division employees and thus avoided strikes.

Edison SpA decreased 1.5% to €1.03 an energy company said third quarter revenues fell 16% to €1.91 billion from €2.28 billion a year ago. Net profit in the quarter fell 31% to €81 million compared to net profit of €117 million a year ago.

ElringKlinger AG rose 2.2% to €13.90 after the automotive supplier said first nine month sales declined 20% to €419.2 million.

HeidelbergCement AG rose 0.1% to €40.79 after the cement maker was upgraded “outperform” at Credit Suisse Group AG.

Hugo Boss AG dropped 9.3% to 22.94 after the designer apparel maker reported third quarter net income declined 25% to €51.5 million.

JCDecaux SA added 3.8% to €14.31 after the outdoor advertising company was upgraded to “buy” from “hold” at Citigroup Inc.

Kloeckner & Co SE the steel trader increased 0.3% to €14.98.

Linde AG rose 0.9% to €72.10 an industrial gases and engineering company said third quarter sales fell 9.5% to €2.84 billion from €3.14 billion a year ago. Net profit in the quarter fell 4.5% to €169 million or €1.00 per diluted share compared to net profit of €177 million or €1.04 per share a year ago.

Luxottica Group S.p.A slipped 0.1% to €16.50 an eyewear maker said third quarter revenues fell 0.9% to €1.22 billion from €1.21 billion a year ago. Net profit in the quarter fell 20.6% to €83.1 million or €0.18 per diluted share compared to net profit of €104.6 million or €0.23 per share a year ago.

Metro AG the retailer added 0.05% to €37.79.

Piaggio & C. SpA closed unchanged at €1.73 after the scooter maker said nine months sales fell 9.3% to €1.17 billion from €1.29 billion a year ago. Net profit in the first-half fell 35% to €40.1 million or €0.10 per diluted share compared to net profit of €62 million or €0.16 per share a year ago.

Ryanair Holdings plc the low-fares, scheduled passenger airline said first-half sales fell 2.2% to €1.77 billion from €1.81 billion a year ago. Net profit in the first-half rose 292% to €373.5 million or €25.21 per diluted share compared to net profit of €95.3 million or €6.41 per share a year ago.

Saft Groupe SA fell 4.6% to €33.73 the manufacturer of batteries for industrial and military use

Suez Environnement SA fell 1.9% to €14.85 after the water company was downgraded to “neutral” from “overweight” at JPMorgan Chase & Co.

DAX Index Movers

Metro AG led the decliners in the DAX index of 0.45% followed by losses in Merck KGaA of 0.42%, in Fresenius SE of 0.30%, in Muenchener Rue AG of 0.14%, in Fresenius Medical Care AG of 0.12%.

Infineon Technologies AG led gainers in the DAX index with a rise of 4.37% followed by increase in Adidas AG of 4.22%, in Linde AG of 3.99%, in SAP AG of 2.52%, in Henkel AG & Co. of 2.43%.

CAC-40 Index Movers

Suez Environnement SA led the decliners in the CAC-40 index of 3.14% followed by losses in Dexia SA of 3.12%, in Unibail-Rodamco SA of 2.05%, in AXA of 1.09%, Cap Gemini SA of 0.92%.

PSA Peugeot Citroen SA gainers in the CAC-40 index with a rise of 3.66% followed by gainers in Bouygues SA of 3.14%, Compagnie de Saint-Gobain SA of 2.85%, in BNP Paribas SA of 2.74%, in Michelin SCA of 2.45%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 66 increased, 35 declined and 1 were unchanged.

The Royal Bank of Scotland Group Plc decliners in the FTSE 100 index with a loss of 8.04% followed by losses in Liberty International Plc of 3.44%, in Hammerson Plc of 3.40%, in Lloyds Banking Group Plc of 3.38%, in SEGRO Plc of 3.26%.

Randgold Resources Ltd. led gainers in the FTSE 100 index with a rise of 5.61% followed by increase in Eurasian Natural Resources Corporation Plc of 5.28%, in Lonmin Plc of 4.85%, in Vedanta Resources Plc of 4.06%, in Rio Tinto Plc of 4.03%.