European Markets Up; ThyssenKrupp Up

Mayank Mehta
14 Dec, 2009
New York City

European markets closed higher after banks rallied in the region. BayernLB will book a total loss of 3.75 billion in the investment related to Austria based Hypo Alpre-Adria. German bonds gained as investor seek safety as Greece grapples with a large budget deficit.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after banks rallied in the region. BayernLB will book a total loss of 3.75 billion in the investment related to Austria based Hypo Alpre-Adria. German bonds gained as investor seek safety as Greece grapples with a large budget deficit.[/R]

European markets edged higher after banks gained and Abu Dhabi offered $10 billion in emergency financing to Dubai World. Greece also plans to lower budget deficit and avoid the bond default.

In London FTSE 100 Index closed higher 53.77 or 1.02% to 5,315.34, in Paris CAC 40 Index increased 26.72 or 0.7% to close at 3,830.44, in Frankfurt DAX index higher 45.97 or 0.8% to close at 5,802.26. In Zurich trading SMI increased 21.51 or 0.4% to close at 6,433.09.

Gainers & Losers

ArcelorMittal gained 1.0% to €28.98 after the global steel producer plans to cut 10,000 jobs and reduce costs by $500 million or 3.5% of revenue in 2010.

Axa SA decreased 1.7% to €22.92 and said Australia based AMP Limited announced a revised joint proposal with the company, offering an increased price for AXA Asia Pacific Holdings Limited for A$6.221 per share, representing a 53% premium on company’s closing share price on November 5.

Axel Springer Verlag AG the German newspaper and media conglomerate rose 0.6% to €74.92.

Bayerische Landesbank chief executive Michael Kemmer resigned and appointed interim chief executive Stefan Ermisch, the current chief finance officer. Bavarian Premier Horst Seehofer in a press briefing in Munich said that the state controlled lender will look for a new permanent chief executive.

Austria will provide additional financing of €450 million to the soon to be nationalized Hypo Alpre-Adria in which BayernLB owns 67% stake.

BayernLB will provide €825 million in financing to keep the Austria based lender alive and will book a total loss of €3.75 billon related to the investment in the company.

Biotest AG gained 0.2% to €34.08 after the biotechnology company’s preferred shares were upgraded to “buy” from “hold” at UniCredit Markets & Investment Banking.

BMW AG the luxury carmaker rose 0.7% to €31.93.

Bull SA the computer maker added 1.0% to €2.99.

Carl Zeiss Meditec AG closed unchanged at €12.05 after the maker of medical lasers to correct vision defects said revenue increases by 6.6% in fiscal year 2008-09. The EBIT margin increased to 11.9% and operative cash flow up by 60%.

Deutsche Bank increased 3.4% to €49.40 after Abu Dhabi offered emergency lending to Dubai World and lowered the prospect of loan losses for banks.

Daimler AG added 1.9% to €35.87 after the manufacturer of luxury cars plans to start a pilot program for an electric version of its Smart minicar in China next year.

Douglas Holding AG the retailer rose 0.09% to €34.10.

Evotec AG advanced 3.6% to €2.27 after the biotechnology company said that it has received a milestone payment from Ono Pharmaceutical Co., Ltd. from its research collaboration aimed at identifying novel inhibitors for a protease target.

HeidelbergCement AG the cement maker rose 1.1% to €47.54.

Metro AG the discount general merchandise retailer of large store formats fell 0.1% to €42.81.

Rallye SA advanced 3.4% to €24.82 after the food and specialized retailer was upgraded to “outperform” from “neutral” at Exane BNP.

Remy Cointreau SA climbed 3.0% to €37.11 after the liquor company upgraded to “outperform” from “underperform” at Exane BNP.

STMicroelectronics N.V gained 2.6% to €5.92

ThyssenKrupp AG rose 2.5% to €25.08 and the company is in exclusive talks with Abu Dhabi MAR Group to sell its Howaldtswerke Deutsche-Werft subsidiary according to a report in Handelsblatt.

Volkswagen AG added 0.1% to €81.81 after the carmaker said moved forward with plans to construct its first United States plant.

DAX Index Movers

Siemens AG led the decliners in the DAX index of 0.74% followed by losses in Volkswagen AG of 0.59%, in Bayer AG of 0.52%, in Adidas AG of 0.37%, in METRO AG of 0.26%.

Deutsche Bank AG led gainers in the DAX index with a rise of 3.12% followed by increase in Salzgitter AG of 2.52%, in Thyssenkrupp AG of 2.41%, in Linde AG of 2.23%, in Daimler AG of 2.19%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 0.53% followed by losses in ArcelorMittal of 0.44%, in Electricite de Strasbourg SA of 0.30%, in Lagardere SCA of 0.19%, Unibail-Rodamco SA of 0.03%.

Technip gainers in the CAC-40 index with a rise of 2.96% followed by gainers in Vallourec SA of 2.63%, STMicroelectronics N.V. of 2.41%, in AXA of 2.37%, in Lafarge S.A. of 2.11%.