Europe Closes Mixed

Elena
20 Feb, 2006
Frankfurt

Asian markets ended mixed on bullish export data. The Nikkei dropped 1.75%, while South Korean Kospi rose 1.2%. European averages finished mixed with London FTSE 100 rising 0.2%, supported by gains in oil majors and bourses in Germany and France dragged by telecoms and Sanofi-Aventis. The U.S. markets are closed Monday for Presidents Day holiday. Wal-Mart, Chesapeake Energy Corp., and Host Marriott are among the major companies expected to release earnings during the week.

U.S. MARKET AVERAGES

U.S. markets are closed Monday for Presidents Day holiday.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks closed mixed to higher as investors ignored advancing oil prices and focused on bullish export data. The Nikkei was one of the few decliners, falling 1.75%. Among other regional markets, South Korea’s Kospi surged 1.16% recovering from an earlier flat trading, Hong Kong’s Hang Seng rose 0.8%, and Australia’s All Ordinaries climbed 0.8%.

European stocks finished mixed, reflecting gains in major oil companies as crude prices rallied and downgrades on major telecoms, and a Food and Drug Administration ruling on Sanofi-Aventis. Trading was light as Wall Street is closed Monday for Presidents day holiday. The German DAX 30 declined 0.25%, the French CAC 40 lost 0.5%, while London’s FTSE 100 advanced 0.16%.

OIL, METALS, CURRENCIES

Crude oil prices jumped over $1 on supply concerns, following a violent militant act against oil pipelines in the Niger Delta. London Brent for April delivery climbed $1.46 to $61.35 a barrel. Trading on the Nymex was closed for Presidents Day holiday.

European gold prices advanced. In London gold traded at the fixed price of $555.70 bid per troy ounce, up from $552.40. In Zurich the precious metal traded at $555.60, up from $553.90. In Hong Kong gold rose $8.20 to close at $552.90. Silver closed at 9.51, up from $9.43.

The U.S. dollar was mixed against other major currencies. The euro traded at $1.1945 up from $1.1931. The dollar bought 118.19, up from 118.16. The British pound stood at $1.7444, up from $1.7405.

EARNINGS NEWS

Schering AG, ((SHR)), drug manufacturer, reported that Q4 net profit advanced 17% to euro139 million (US$166 million), from euro118 million a year ago. Sales rose to euro1.4 billion (US$1.67 billion) from euro1.27 billion in he year-ago period on sales of its multiple sclerosis treatment and oral contraceptive. For the full year, earnings advanced 23 % to euro619 million (US$739.02 million) from euro504 million a year ago.

Ship Finance International Ltd, ((SFL)), oil tanker operator, reported Q4 net income of $1.11 a share, down from $1.38 a share in the year-ago period on 5% revenue, missing analysts’ forecasts of $1.17 a share.

Brady Corp, ((BRC)), provider of identification systems and products, reported Q2 earnings of 43 cents a share, up from a profit of 41 cents a share a year-ago on 17.7% sales growth, missing analyst estimate for a profit of 46 cents a share.

Campbell Soup, ((CPB)), food producer, reported Q2 earnings of 61 cents a share, up from 57 cents a share in the year-earlier period on 3% net sales growth, beating analysts’ expectations of 59 cents a share.