European Indexes Up on German Confidence Data

Mayank Mehta
26 Jan, 2010
New York City

European markets closed higher after business climate index in Germany increased and UK reported its first quarterly gain in seven quarters. Siemens rallies 5% after reporting sector profit increase of 11%. Novartis net surges 49% and appointed new chief executive.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after business climate index in Germany increased and UK reported its first quarterly gain in seven quarters. Siemens rallies 5% after reporting sector profit increase of 11%. Novartis net surges 49% and appointed new chief executive.[/R]

European markets closed higher after UK reported its first quarterly economic expansion in seven quarters. The business climate index in Germany increased for the tenth month in a row.

In London FTSE 100 Index closed higher 16.54 or 0.31% to 5,276.85, in Paris CAC 40 Index increased 25.19 or 0.67% to close at 3,807.04, in Frankfurt DAX index higher 37.56 or 0.67% to close at 5,668.93. In Zurich trading SMI increased 32.93 or 0.51% to close at 6,484.23.

The Ifo Institute in Munich said that the business climate index in Germany increased to 95.8 from 94.6 in December. The index is at a monthly high since July 2008 and dropped to 26-year low in March of 2008 to 82.2.

Gainers & Losers

April Group SA rose 2.0% to €22.20 an insurer said full-year sales rose 10.5% to €813 million from €735.8 million a year ago and 7.8% on a pro-forma basis.

Arkema SA the chemicals maker rose 0.02% to €27.27.

Bigben Interactive SA the video-game designer closed unchanged at €8.05.

BMW AG the automobile manufacturer dropped 1.8% to €29.59.

Deutsche Boerse AG decreased 1.9% to €49.94 and the chief executive of company said that continued cost discipline will be a top priority for the German exchange operator.

Koninklijke KPN N.V decreased 1% to €11.83 after the telecom group said fourth quarter revenues fell 7.5% to €3.35 billion from €3.62 billion a year ago. Net profit for the quarter rose 270% to €1.09 billion or €0.68 per diluted share compared to net profit of €295 million or €0.17 per share a year ago.

K+S AG the agro-chemical maker fell 2.4% to €41.11.

Luxottica Group S.p.A fell 0.6% to €18.80 after the manufacturer of fashion, luxury and sports eyewear said fourth quarter sales rose 6.4% to €1.16 billion from €1.24 billion a year ago and fell 1.1% at constant exchange rates.

Mastrad SA the cooking utensils maker surged 11.3% to €3.54.

Metrologic Group declined 4.4% to €27.57 after the manufacturer of dimensional control systems said full-year sales were flat at 3.6% to €27.0 million from €27.0 million a year ago. Net profit for the full-year fell 26% to €8.0 million or €2.05 per diluted share compared to net profit of €10.8 million or €2.75 per share a year ago.

Munich Re AG the reinsurer rose 0.5% to €109.05.

NextRadioTV SA the owner of French radio stations RMC and BFM gained 3.4% to €14.90.

Novartis AG the pharmaceutical company said fourth quarter revenues rose 28% to $12.9 billion from $10.08 billion a year ago. Net profit for the quarter rose 54% to $2.3 billion or $1.01 per diluted share compared to net profit of $1.5 billion or $0.67 per share a year ago.

Salzgitter AG the steel technology industry fell 0.5% to €65.94.

Siemens AG added 2.9% to €66.51 an engineering company said first quarter revenues fell 11% to €17.4 billion from €19.6 billion a year ago. Net profit for the quarter rose 23% to €1.48 billion or €1.68 per diluted share compared to net profit of €1.20 billion or €1.39 per share a year ago.

Sword Group SA the consultant gained 1.9% to €28.25.

ThyssenKrupp AG the steelmaker fell 1.9% to €23.62.

DAX Index Movers

Deutsche Boerse AG led the decliners in the DAX index of 3.23%, followed by losses in Deutsche Bank AG of 1.97%, in Deutsche Post AG of 1.77%, in Fresenius SE of 1.38%, and in ThyssenKrupp AG of 1.28%.

Siemens AG led gainers in the DAX index with a rise of 4.57%, followed by losses in Diamler AG of 1.53%, in Muenchener Rue AG of 1.20%, in Bayer AG of 1.11%, and in Beiersdorf AG of 0.94%.

CAC-40 Index Movers

ArcelorMittal led the decliners in the CAC-40 index of 1.68%, followed by losses in Lagardere SCA of 1.43%, in Credit Agricole SA of 1.04%, in Electricite de Strasbourg SA of 0.72%, and in Lafarge S.A. of 0.49%.

Carrefour SA gainers in the CAC-40 index with a rise of 2.53% followed by gainers in PSA Peugeot Citroen S.A.of 2.11%, in LVMH Moet Hennessy Louis Vuitton SA of 2.11%, in BNP Paribas SA of 2.07% and in STMicroelectronics N.V. of 2.02%.