Telecoms Lift Europe

Elena
06 Mar, 2006
Frankfurt

European averages advanced at mid-day dealings on telecom-consolidation news. London FTSE 100 rose 0.9% to reach a new four-year high at 5910. Asian-Pacific benchmarks finished largely in the positive with the Nikkei rising 1.5% on data showing increased capital investment. Singapore Straits Times rose 0.8% to hit a fresh six-year high. Indian market jumps 1%.

8:30 AM ET-INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks closed mostly higher. The Nikkei surged 1.5% to 15901.16, boosted by upbeat data showing 9.5% rise in capital spending. Across the region, South Korea’s Kospi climbed 1.2%, Singapore Straits Times rose 0.8% to reach a new six-year high, while Shanghai Composite lost 0.4%. Hong Kong’s Hang Seng traded flat ahead of global bank HSBC earnings release.

European stocks advanced significantly at mid-day, lifted by telecom-consolidation news. The Linde-BOC Group deal also provided support. The German DAX 30 rose 0.7%, the French CAC 40 climbed 00.9%, and London’s FTSE 100 hit a fresh four-year high rising 0.9% to 5910.

OIL, METALS, CURRENCIES

Crude oil prices retreated ahead of two important meetings in Vienna- one on Iran’s nuclear program and the other one on OPEC output levels. Light sweet crude April delivery declined 25 cents to $63.42 a barrel. London Brent for April delivery lost 36 cents to $63.82 a barrel.

European gold prices lost ground. In London gold declined to $568 bid per troy ounce, down from $568.60. In Zurich the precious metal fell to $567.40 from $568.30. In Hong Kong gold fell $1 to $567.80. Silver opened at $10.10, up from $10.20.

The U.S. dollar traded mixed against other major currencies. The euro traded at $1.2036, down from $1.2037. The dollar bought 117.23 yen, up from 116.34. The British pound was quoted at $1.7553, up from $1.7500.

EARNINGS NEWS

Lexar Media Inc., ((LEXR)), electronic memory card manufacturer, expects to report a Q4 net loss in the range of 25 cents to 28 cents a share. Lexar added that it expects revenue for Q4 to be in the range of $237 million to $240 million. The company announced it has pushed its results back to March 14 to complete its accounting analysis of inventory and other reserves.