German Unemployment at 8.1%; Weak Markets

Mayank Mehta
05 Jan, 2010
New York City

European markets closed lower in light trading. German unemployment rate was unchanged in December at 8.1%. BNP Paribas unit plans covered bond issue. Airbus hopes A400 million negotiations will be concluded by the end of January. Vinci SA unit buys Keolis stakes in four French airport operators.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower in light trading. German unemployment rate was unchanged in December at 8.1%. BNP Paribas unit plans covered bond issue. Airbus hopes A400 million negotiations will be concluded by the end of January. Vinci SA unit buys Keolis stakes in four French airport operators.[/R]

In a light trading volume market indexes declined as investors await earnings season to begin next week.

In London FTSE 100 Index closed higher 22.16 or 0.40% to 5,522.50, in Paris CAC 40 Index decreased 1.06 or 0.03% to close at 4,012.91, in Frankfurt DAX index lower 16.44 or 0.27% to close at 6,031.86. In Zurich trading SMI decreased 52.18 or 0.79% to close at 6,579.26.

German unemployment was unchanged at 8.1% in December according to the data released by the Federal Labor Agency in Nuremberg. The jobless count declined 3,000 to 3.42 million, sixth monthly decline.

The euro close nearly unchanged against the dollar and the pound.

Gainers & Losers

Adidas AG the sporting-goods maker advanced 2.4% to €39.47.

Air Liquide SA the industrial gases supplier decreased 1.4% to €83.28.

BNP Paribas SA closed unchanged at €57.14 after the bank said it is preparing a covered bond issue.

Eads NV dropped 1.2% to €13.82.

Electricite de Strasbourg SA rose 0.2% to €41.67 after the electricity distributor said the company has concluded final agreements on a swap of electricity drawing rights and generation assets between France and Germany.

Fresenius Medical Care AG & Co the provider of kidney dialysis declined 1.3% to €37.33.

K+S AG increased 7.2% to €44.75 after the potash producer was upgraded to “buy” from “underperform” at Bank of America Merrill Lynch.

SMA Solar Technology AG rose 3.2% to €97.54 after the maker of electric transformers was upgraded to “buy” from “neutral” at Bank of America Merrill Lynch.

Societe Fonciere Lyonnaise SA closed unchanged at €33.30 after the realty group and Predica, a Credit Agricole Assurances subsidiary, have acquired co-ownership units in the building at 82/90 Avenue des Champs Elysees in the centre of Paris for €16.6 million excluding transfer costs.

SolarWorld AG the solar company climbed 4.7% to €16.41.

Touax SCA gained 8.4% to €24.30 after the container-leasing company board authorized the payment of interim dividend of €0.50 per share on January 12.

Vinci SA rose 0.1% to €40.03 after the builder said its unit Vinci Airports has bought stakes from passenger transport operator Keolis in the operating companies of four regional airports in France. Company airports now hold 99% of the capital of the operating companies of the four regional airports in France, according to Dow Jones reported.

DAX Index Movers

Fresenius Medical Care AG & Co. KGaA led the decliners in the DAX index of 2.73%, followed by losses in Fresenius SE of 2.12%, in Linde AG of 1.72%, in Henkel AG of 1.61%, and in Volkswagen AG of 1.59%.

K+S AG led gainers in the DAX index with a rise of 7.50% followed by increase in Commerzbank AG of 4.10%, in Adidas AG of 3.49%, in Infineon Technologies AG of 2.82%, and in Deutsche Bank AG of 2.24%.

CAC-40 Index Movers

Pernod Ricard SA led the decliners in the CAC-40 index of 2.43%, followed by losses in Air Liquide SA of 2.00%, in L''Oreal SA of 1.59%, in PPR SA of 1.46%, and in Sanofi-Aventis of 1.32%.

Alcatel Lucent gainers in the CAC-40 index with a rise of 4.03% followed by gainers in Dexia SA of 3.92%, in Michelin SCA of 2.53%, in Carrefour SA of 2.37%, and in Lafarge S.A. of 2.16%.