European PPI Rise 0.1%, New Orders Fall 2.2%

Mayank Mehta
06 Jan, 2010
New York City

European markets traded sideways ahead of earnings season next week. Industrial new orders declined 2.2% in November and producer prices increased 0.1%. Service sector in the euro region expanded in December.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets traded sideways ahead of earnings season next week. Industrial new orders declined 2.2% in November and producer prices increased 0.1%. Service sector in the euro region expanded in December.[/R]

European benchmark indexes edged up in light volume as investors prepare for earnings season next week and return from holidays.

In London FTSE 100 Index closed higher 7.54 or 0.14% to 5,530.04, in Paris CAC 40 Index increased 4.76 or 0.12% to close at 4,017.67, in Frankfurt DAX index higher 2.47 or 0.04% to close at 6,034.33. In Zurich trading SMI decreased 19.85 or 0.30% to close at 6,559.41.

The services sector index increase in December to 50.1 from 48.7 in November. The index above shows an expansion was reported by Markit Economics. The non-manufacturing index covers nearly 87% of the economy in the region.

Industrial New Orders in EU Falls

Industrial new orders for EU16 area fell by 2.2% in October 2009, after an increase of 1.7% in September and in EU27 new orders decreased by 1.6% in October, after an increase of 1.4% in September. The orders declined 14.5% in the year to October.

Factory gate prices in the euro zone declined 4.4% from a year ago in November. The prices declined 6.6% in October. November producer prices increased 0.1% from October according to the Eurostat.

Gainers & Losers

Alstom SA decreased 0.1% to €51.58 and the transportation engineering company is looking for a partner in India and acquiring a rail signaling and maintenance company in Europe or North America.

Altran Technologies SA the innovation consultant added 1.0% to €3.74.

ArcelorMittal fell 2.6% to €32.20 after the steelmaker was downgraded to “sell” from “hold” at Theodoor Gilissen Bankiers NV.

Argan SA the warehouse owner rose 1.8% to €11.40.

CGG Veritas increased 1.8% to €16.32 after the seismic surveyor said fourth quarter vessel availability rate was 86%. This compares to a 90% availability rate in the third quarter of 2009 and a 91% rate in the fourth quarter of 2008.

Commerzbank AG rose 1.9% to €6.37 after chairman Klaus-Peter Mueller attempted to loosen government-imposed pay limits for the bank''s management board but was rebuffed, German daily Die Welt said in an advance copy of its Wednesday edition.

Deutsche Telekom AG fell 2.1% to €10.28 after the phone company was downgraded to “sell” from “neutral” at UBS AG.

Iliad SA added 3.2% to €88.03 after the telecom sector was upgraded to “buy” from “hold” at Deutsche Bank AG.

Klepierre SA fell 2.0% to €28.75 after the mall owner was downgraded to “hold” from “buy” at Royal Bank of Scotland.

Le Carbone Lorraine SA the maker of industrial fuses climbed 1.0% to €26.49.

PSA Peugeot Citroen S.A rose 3.9% to €25.72 after the carmaker was upgraded to “buy” from “neutral” at Bank of America.

Porsche Automobil Holding SE rose 2.5% to €45.92 after the sports car maker was upgraded to “outperform” from “market perform” at Sanford C. Bernstein & Co.

Sodexo SA increased 5.7% to €42.72 after the catering company reported first quarter sales decline 2.7% and reiterated its full-year targets. Quarterly sales fell to €3.87 billion from €3.97 billion the previous year.

Symrise AG the maker of fragrances and cosmetic ingredients rose 0.9% to €15.68.

DAX Index Movers

Deutsche Telekom AG led the decliners in the DAX index of 2.53%, followed by losses in Deutsche Bank AG of 1.25%, in Deutsche Boerse AG of 1.20%, in Infineon Technologies AG of 0.95%, and in Muenchener Rue AG of 0.78%.

Commerzbank AG led gainers in the DAX index with a rise of 3.18% followed by increase in Volkswagen AG of 3.05%, in Linde AG of 2.00%, in SAP AG of 1.98%, and in BMW AG of 1.27%.

CAC-40 Index Movers

Vallourec SA led the decliners in the CAC-40 index of 1.26%, followed by losses in PPR SA of 1.22%, in Accor SA of 1.19%, in Vivendi SA of 1.07%, and in Schneider Electric SA of 1.02%.

PSA Peugeot Citroen S.A. gainers in the CAC-40 index with a rise of 6.39% followed by gainers in Renault SA of 2.45%, in Dexia SA of 2.34%, in Cap Gemini SA of 1.98%, and in Lafarge S.A. of 1.81%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 54 increased, 48 declined and None were unchanged.

Marks and Spencer Group Plc decliners in the FTSE 100 index with a loss of 6.79% followed by losses in The British Land Company Plc of 2.57%, in Petrofac Limited of 2.52%, in Segro Plc of 2.42%, and in Schroders Plc of 2.24%.

Autonomy Corporation Plc led gainers in the FTSE 100 index with a rise of 6.12% followed by increase in Wolseley Plc of 4.69%, in The Royal Bank of Scotland Group Plc of 3.62%, in Xstrata Plc of 3.45%, and in Barclays Plc of 2.99%.