European Markets Rise; GM Rejects Opel Sale

Mayank Mehta
04 Nov, 2009
New York City

European markets closed higher. German automakers gained on higher U.S. sales in October. Societe Generale third quarter earnings doubled. Total SA quarterly net declined 37% on lower refining margin and lower oil price.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher. German automakers gained on higher U.S. sales in October. Societe Generale third quarter earnings doubled. Total SA quarterly net declined 37% on lower refining margin and lower oil price.[/R]

General Motors board rejected a plan to sell Adam Open GmbH to Canada based Magna International. The move the keep the German unit in-house may lead a strike at the plant, demand for the deferred wages and loan recall from German government of 1.5 billion euros.

In London FTSE 100 Index closed higher 81.73 or 1.62% to 5,118.94, in Paris CAC 40 Index increased 93.15 or 2.60% to close at 3,677.40, in Frankfurt DAX index higher 106.05 or 1.98% to close at 5,459.40. In Zurich trading SMI increased 65.55 or 1.05% to close at 6,278.90.

The dollar declined 1.1% to $1.488 against one euro.

Gainers & Losers

Adidas AG added 3.5% to €33.80 after the sportswear and footwear maker said third quarter sales fell 6% to €2.89 billion from €3.08 billion a year ago. Net profit in the quarter fell 30% to €213 million or €1.03 per diluted share compared to net profit of €302 million or €1.44 per share a year ago.

BMW AG rose 0.9% to €31.81 after the maker of luxury vehicles makers’ U.S. sales fell 19% to 20,619 cars in October.

Daimler AG rose 3.9% to €32.81 after the maker of luxury vehicles said its U.S. sales last month increased 9.4%, led by a jump in Mercedes Benz volumes.

Porsche Automobil Holding SE rose 1.9% to €52.50.

Scor SE climbed 1.5% to €17.57 after the insurer said third quarter gross written premiums rose 3% to €1.63 billion from €1.58 billion a year ago. Net profit in the quarter rose 147% to €94 million compared to net profit of €38 million a year ago.

Societe Generale SA rose 4.1% to €45.47 after the banking group said third quarter net profit rose 133% to €426 million compared to net profit of €183 million a year ago.

SolarWorld AG increased 1.5% to €14.92 after the solar company said third quarter sales fell 2.4% to €232.5 million from €238.3 million a year ago. Net income after taxes from continued operations in the quarter fell 56% to €16 million compared to net profit of €36.1 million a year ago.

Total SA fell 0.2% to €40.85 an integrated international oil and gas company said third quarter sales fell 31% to €33.63 billion from €48.85 billion a year ago. Net profit in the quarter fell 37% to €1.92 billion or €0.86 per diluted share compared to net profit of €3.05 billion or €1.36 per share a year ago.

United Internet AG increased 6.3% to €9.46 after the Internet access provider said third quarter sales grew 4.4%.

Volkswagen AG added 1.6% to €107.95 after the carmaker said US sales rose 3.4% to 17,037 in October 2009.

DAX Index Movers

Beiersdorf AG led the decliners in the DAX index of 3.17%.

Infineon Technologies AG led gainers in the DAX index with a rise of 6.49% followed by increase in Commerzbank AG of 4.07%, in Salzgitter AG of 3.90%, in Deutsche Lufthansa AG of 3.88%, Deutsche Post AG of 3.82%.

CAC-40 Index Movers

Pernod Ricard SA led the decliners in the CAC-40 index of 0.68%.

Alcatel Lucent gainers in the CAC-40 index with a rise of 6.28% followed by gainers in Technip of 6.05%, Accor SA of 5.61%, in Credit Agricole SA of 5.51%, in Societe Generale SA of 5.38%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 90 increased, 10 declined and 2 were unchanged.

Cadbury Plc decliners in the FTSE 100 index with a loss of 1.42% followed by losses in Bunzl Plc of 1.23%, in Lloyds Banking Group Plc of 1.18%, in Associated British Foods Plc of 0.67%, in Diageo Plc of 0.65%.

Fresnillo Plc led gainers in the FTSE 100 index with a rise of 8.79% followed by increase in Thomas Cook Group Plc of 8.03%, in Next Plc of 6.91%, in Kazakhmys Plc of 6.88%, in Aviva Plc of 6.25%.