BNP Paribas Earnings Lift European Sentiment

Mayank Mehta
17 Feb, 2010
New York City

European markets advanced on better than expected earnings from BNP Paribas, Atos Origin, BIC SA, Deutsche Boerse and ING. Euro zone reported trade surplus of

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets advanced on better than expected earnings from BNP Paribas, Atos Origin, BIC SA, Deutsche Boerse and ING. Euro zone reported trade surplus of €4.4 billion in December. Construction activity increases in the month.[/R]

European markets closed higher after investors focused on earnings. BNP Paribas reported its fourth quarterly profit in a row a day after Barclays reported better than expected income.

Seasonally adjusted EU construction activities increased 0.5% both in euro area in December 2009, compared with the previous month. In November construction activity fell by 0.8% in the euro area and by 0.4% in the wider EU 27 area.

The first estimate of December trade surplus in the euro area was €4.4 billion compared to deficit of €1.8 billion in December 2008. Seasonally adjusted exports rose by 3.1% in December compared to November and imports declined by 1.7%. In the wider EU 27 area, the deficit decreased to €2.5 billion from €11.3 billion in the month a year ago.

In London FTSE 100 Index closed higher 47.45 or 0.90% to 5,291.51, in Paris CAC 40 Index increased 62.48 or 1.70% to close at 3,731.52, in Frankfurt DAX index higher 65.19 or 1.17% to close at 5,657.31. In Zurich trading SMI increased 63.44 or 0.98% to close at 6,561.10.

Gainers & Losers

Atos Origin SA added 5.0% to €34.08 after the provider of information technology services said full-year revenues fell 3.7% to €5.13 billion from €5.32 billion a year ago. Net profit for the full-year rose 40% to €32 million compared to net profit of €23 million a year ago.

BIC SA added 2.3% to €51.93 after the manufacturer of stationery products, shavers and lighters said full-year revenues rose 10% to €1.56 billion from €1.42 billion a year ago. Net profit for the full-year rose 4.7% to €151.7 million or €3.15 per diluted share compared to net profit of €144.9 million or €3.00 per share a year ago.

BNP Paribas SA advanced 2.1% to €50.30 after the bank said full-year revenues rose 47% to €40.2 billion from €27.4 billion a year ago. Net profit for the full-year rose 93% to €5.83 billion or €5.20 per diluted share compared to net profit of €3.0 billion or €2.97 per share a year ago.

Deutsche Bank AG the bank rose 2.6% to €46.97.

Deutsche Boerse AG rose 2.4% to €48.50 an international financial marketplace operator said fourth quarter revenues fell 17% to €505.4 million from €609.0 million a year ago. Net loss for the quarter was €33.0 million compared to net profit of €222.4 million a year ago.

EADS NV gained 4.8% to €14.47 after the owner of planemaker Airbus SAS announced that its subsidiary, EADS Defence & Security has been awarded a contract by the Bulgarian Ministry of Finance to extend the TETRA network for the security forces.

ING Groep N.V increased 2.5% to €8.96 after the financial services company said fourth quarter Gross premium income fell 25.7% to €6.67 billion from €8.97 billion a year ago. Net loss for the quarter was €712 million or €0.33 per diluted share compared to net loss of €3.71 billion or €1.82 per share a year ago.

Norsk Hydro ASA dropped 5% to Kr 39.70 after the aluminum producer fourth quarter sales were Kr 16.4 billion.

Poncin Yachts SA the sailboat maker increased 8.3% to €1.55.

Publicis Groupe S.A decreased 2.5% to €28.42 after the advertising and media group said full-year sales fell 3.8% to €4.52 billion from €4.70 billion a year ago. Net profit for the full-year fell 9.8% to €403 million or €1.90 per diluted share compared to net profit of €447 million or €2.12 per share a year ago.

Puma AG Rudolf Dassler Sport fell 1.8% to €206.70 after the shoes and sportswear maker said fourth quarter sales fell 13% to €489.5 million from €561.3 million a year ago. Net profit for the quarter rose 100% to €16.2 million or €1.08 per diluted share compared to net profit of €8.1 million or €0.60 per share a year ago.

Rheinmetall AG the automotive sector added 1.1% to €48.07.