European Markets Advance

Darlington Musarurwa
28 Dec, 2009
New York City

European markets closed higher on the estimates of higher retail sales in the holiday period. Renewable energy companies gained after China approved legislation. Oil and commodities processors advanced on larger than targeted economic expansion in China.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher on the estimates of higher retail sales in the holiday period. Renewable energy companies gained after China approved legislation. Oil and commodities processors advanced on larger than targeted economic expansion in China.[/R]

European markets gained as investors took a positive view of holiday retail sales in the U.S. and Europe. Japan reported its ninth consecutive monthly increase in factory production and China said current year economic expansion is likely to exceed its target.

Paris CAC 40 Index increased 34.42 or 0.88% to close at 3,947.15, in Frankfurt DAX index higher 45.48 or 0.76% to close at 6,002.92. In Zurich trading SMI increased 11.03 or 0.17% to close at 6,591.01. Markets in United Kingdom were closed today.

Renewable energies equipment makers and natural resource companies gained after China approved new laws that require grid operators to purchase electricity from alternative energy generators.

Vestas increased 1.1% to Dkk 304.25 and Repower SE increased 4.7% to €129.20.

Gainers & Losers

Areva SA the offers technological solutions for nuclear power generation and electricity transmission and distribution fell 2.4% to €342.00 after Korea based consortium was selected for $20 billion nuclear power project in United Arab Emirates beating the company.

Axel Springer Verlag AG fell 0.4% to €76.62.

Deutsche Telekom AG rose 0.3% to €10.45.

Electricite de Strasbourg SA added 1.0% to €41.31 after the electricity distributor said that funds controlled by Abu Dhabi and Canada are two possible partners to bid for power-distribution-networks business in the U.K. with a joint offer that could go be at least €5.5 billion ($7.92 billion) according to French Web site Wansquare reported.

Energie Baden-Wuerttemberg AG the operating in the energy sector rose 0.8% to €39.90 and GDF Suez SA the natural gas and electricity supplier increased 1.6% to €29.87.

Groupe Eurotunnel SA the operator of the channel tunnel rose 0.3% to €6.59.

MAN SE the engineering group dropped 0.2% to €54.35.

Merck KGaA the pharmaceutical and chemical business sectors declined 0.6% to €64.50.

PSA Peugeot Citroen S.A the manufacturer of passenger cars and light commercial vehicles advanced 1.0% to €23.70.

Renault SA gained 0.3% to €36.06 after the auto maker said that the company and Daimler AG are exploring technology partnership.

Sperian Protection SA added 3.2% to €50.90 after the protection equipment maker refinanced its existing loan facility to €300 million.

Volkswagen AG added 0.4% to €77.23.

DAX Index Movers

Fresenius Medical Care AG & Co. KGaA led the decliners in the DAX index of 0.88%, followed by losses in BMW AG of 0.87%, in MAN SE of 0.64%, in Merck KGaA of 0.45%, and in Commerzbank AG of 0.42%.

Siemens AG led gainers in the DAX index with a rise of 1.64% followed by increase in E.ON AG of 1.53%, in Salzgitter AG of 1.40%, in ThyssenKrupp AG of 1.14%, and in Allianz SE of 1.05%.

CAC-40 Index Movers

Michelin SCA led the decliners in the CAC-40 index of 0.61%, followed by losses in Essilor International of 0.49%, in Vallourec SA of 0.43%, in Lafarge S.A of 0.31%, and in Pernod Ricard SA of 0.15%.

ArcelorMittal gainers in the CAC-40 index with a rise of 2.40% followed by gainers in Compagnie de Saint-Gobain SA of 2.40%, in GDF Suez SA of 1.85%, in Suez Environnement SA of 1.54%, and in PSA Peugeot Citroen S.A of 1.51%.