European Makets Close Lower; Trichet Comments

Mayank Mehta
20 Nov, 2009
New York City

European markets closed lower. The ECB President Trichet comments suggest a gradual unwinding of economic stimulus. JC Decaux renews its exclusive advertising contacts in Shanghai. Technip awarded gas facilities contract in Abu Dhabi. Solon SE nine-month loss shrinks.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower. The ECB President Trichet comments suggest a gradual unwinding of economic stimulus. JC Decaux renews its exclusive advertising contacts in Shanghai. Technip awarded gas facilities contract in Abu Dhabi. Solon SE nine-month loss shrinks.[/R]

European markets closed lower. The ECB president Jean-Claude Trichet indicated that “non-standard” measures will be discontinued gradually so that they do not contribute to inflationary pressures.

In London FTSE 100 Index closed lower 13.61 or 0.26% to 5,254.09, in Paris CAC 40 Index decreased 22.66 or 0.60% to close at 3,737.56, in Frankfurt DAX index lower 33.17 or 0.58% to close at 5,669.01. In Zurich trading SMI decreased 10.73 or 0.17% to close at 6,276.08.

Gainers & Losers

ArcelorMittal the steelmaker added 2.0% to €25.77.

Arques Industries AG closed unchanged at €1.69 said third quarter sales fell 36% to €829.5 million from €1.30 billion a year ago. Net loss in the quarter was €9.5 million or €0.37 per diluted share compared to net loss of €78.4 million or €2.97 per share a year ago.

Buzzi Unicem SpA fell 2.5% to €10.69 after the cement maker said nine months sales fell 23.5% to €2.08 billion from €2.72 billion a year ago. Net profit in the nine months fell 60% to €117.3 million compared to net profit of €295.1 million a year ago.

Continental AG the auto-parts maker added 1.9% to €38.35.

Deutsche Bank AG fell 0.1% to €50.35.

Deutsche Lufthansa AG advanced 0.5% to €10.85 and Deutsche Telekom AG rose 0.4% to €9.59.

IKB Deutsche Industriebank AG closed unchanged at €0.89 after the lender said that it expects to report for the first half of the fiscal 2009 a net loss of €398 million.

Infineon Technologies AG the maker of semiconductors climbed 2.1% to €3.27.

Italcementi SpA declined 1.4% to €9.41 after the producer and distributor of cement said nine months sales fell 13% to €3.85 billion from €4.42 billion a year ago. Net profit in the nine months fell 47.7% to €103.5 million compared to net profit of €197.8 million a year ago.

JCDecaux SA advanced 1.8% to €15.73 after the outdoor advertising company said that it has renewed and extended a 10-year bus body advertising concession contract on an exclusive basis with Shanghai Bashi Co.,Ltd.

Lagardere SCA rose 0.6% to €30.31 after chief financial officer of the publishing group said Thursday that the group still aims to eventually sell the minority stake it holds in Vivendi SA''s Canal Plus Group and the stake in European Aeronautic Defence & Space Co NV.

Merck KGaA decreased 0.6% to €63.60 after the drugmaker was downgraded to “hold” from “buy” at Citigroup Inc.

Compagnie Plastic Omnium SA the plastics company rose 2.1% to €18.38.

RWE AG the utility climbed 1.2% to €63.19.

Solon SE dropped 3.3% to €7.47 after the solar technology company said nine months sales fell 66% to €218.4 million from €637.0 million a year ago. Net loss in the nine months was €80.4 million or €6.42 per diluted share compared to net profit of €27.3 million or €2.18 per share a year ago.

Suez Environnement SA the field of environmental services climbed 0.1% to €15.09.

Sword Group SA rose 1.9% to €24.00 after the consultant said that it has acquired AgencyPort, an insurance software developer based in the U.S.

Technip SA added 0.5% to €48.24 after the oil field services company said that it has been awarded by Abu Dhabi Gas Industries Ltd a turnkey EPC contract of $415 million for the ASAB 3 Project.

Thales SA fell 0.1% to €32.39 after the defense-electronics maker was downgraded to “negative” from “stable” by Fitch Ratings.

Total SA rose 0.2% to €42.15 an integrated international oil and gas company said Shtokman, a natural gas field in Russia''s Arctic waters that is one of the world''s largest gas deposits, will start producing two years later than OAO Gazprom''s planned launch date, according to one of the partners in the megaproject.

Vinci SA rose 1.1% to €38.20 after the construction company said that it has decided to merge the functions of Chairman and Chief Executive Officer and to appoint a Vice-Chairman and Senior Director.

Volkswagen AG rose 0.8% to €96.41 after the carmaker said on Friday its supervisory board cleared the way for the planned integration of Porsche Automobil Holding SE by approving contracts determining details of the complex tie-up.

DAX Index Movers

Infineon Technologies AG led the decliners in the DAX index of 5.30%, followed by losses in Commerzbank AG of 3.87%, in Deutsche Bank AG of 2.68%, in Volkswagen AG of 1.95%, Siemens AG of 1.79%.

Henkel AG led gainers in the DAX index with a rise of 2.26% followed by increase in K+S AG of 1.74%, in Metro AG of 1.20%, in Beiersdorf AG of 1.05%, Bayer AG of 0.68%.

CAC-40 Index Movers

STMicroelectronics N.V. led the decliners in the CAC-40 index of 3.46%, followed by losses in Unibail-Rodamco SA of 2.81%, in Societe Generale SA of 2.73%, in Dexia SA of 2.62%, EADS NV of 2.57%.

Danone SA gainers in the CAC-40 index with a rise of 1.57% followed by gainers in Air Liquide SA of 0.64%, in Veolia Environnement of 0.54%, in GDF Suez SA of 0.52%, in L''Oreal SA of 0.38%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 40 increased, 60 declined and 2 were unchanged.

Thomas Cook Group Plc decliners in the FTSE 100 index with a loss of 4.26% followed by losses in TUI Travel Plc of 4.00%, in Segro Plc of 3.71%, in 3i Group Plc of 3.19%, in Hammerson Plc of 3.14%.

Cable & Wireless Plc led gainers in the FTSE 100 index with a rise of 1.84% followed by increase in Johnson Matthey Plc of 1.74%, in Old Mutual Plc of 1.46%, in Shire Plc of 1.43%, in Randgold Resources Ltd. of 1.25%.