European Shares Rebound

Elena
09 Mar, 2001
New York City

European averages posted solid gains at mid-day dealings on the back of lower oil prices, generally higher close of U.S. markets, and strong earnings from insurance and retail companies. The German DAX 30 was the leading gainer, up 0.9%, follwed by London FTSE 100 , up 0.6% and the French CAC 40 rising 0.5%.

8:30 AM A Couple of Companies Report Decline in Quarterly Profit
National Atlantic Holdings Corp, ((NAHC)), property-casualty insurer, reported Q4 net income of 19 cents a share, a decline from $1.28 a share in the year-ago period. Q4 profit reflected charges connected with losses in the company homeowners segment, due in part to what it called a disproportionate number of total losses resulting from fires. The effect of these losses amounted to 27 cents a share, the company added. The company missed analysts’ estimates for earnings of 31 cents a share. Revenues for Q4 dropped 23.2%, to $44.6 million from the prior year''s $58.1 million, as written premiums fell.

Methode Electronics Inc, ((METH)), manufacturer of electronic component and subsystem devices, reported Q3 net income of 8 cents a share, considerably down from 13 cents in the year-ago period. Analysts views were for earnings of 8 cents a share, in line with results. The company''s cost of products sold advanced to 81.6% of net sales in Q3 from previous year’s 77.8%.

Claire''s Stores Inc, ((CLE)), jewelry retailer, reported that Q4 net income gained 16.7% to 69 cents a share, as net sales advanced 5% to $414.7 million and same-store sales advanced 6% in Q4. The company topped analyst estimate by a penny. The company added that sales received a boost from its first stores in Spain, Holland and Belgium, which were opened during the last year, and added it intends to enter at least one other new country in the next 12 months.

EGL Inc, ((EAGL)), logistics firm, reported that Q4 net income jumped 48% to 47 cents a share on 9.6% revenue growth. Q4 included a number of charges and gains, including an overcharge penalty, a charge on a U.K. warehouse fire, and tax benefits.

Stage Stores Inc, ((STGS)), clothing retailer, reported Q4 net income rose 5.9% to 68 cents a share. Sales advanced 7.6% to $418.6 million. The company met analyst estimate for earnings of 68 cents a share. The company added that same-store sales advanced 5.6%, as same-store sales in Louisiana and Mississippi were particularly strong as customers hit by hurricanes Katrina and Rita replaced their lost belongings.

Hansen Natural Corp, ((HANS)), soft drink maker, reported that Q4 net income more than doubled to 75 cents a share, from owing to a substantial rise in the sale of Monster Energy drinks. The company''s net sales for Q4 increased 94.7% to $98 million.

8:00AM The Bank of Japan abandons easy monetary policy
Asian-Pacific benchmarks traded mostly higher after the Bank of Japan brought relief to regional markets, stating a decision to abandon its ultra-easy monetary policy. The bank concluded that the economic and price conditions are favorable for making a shift to a more normal monetary policy. The Nikkei soared 2.6% to 16,036.91 ending a five-session decline. The yen also got a boost on the news, rising to 117.44 against the dollar. Across the region, Taiwan Weighted index rose 0.4%, Hong Kong’s Hang Seng gained 0.1%, recovering from recent losses with the help of property stocks, while South Korea’s Kospi fell 0.2% for a third session in a row, dragged by Samsung Electronics decline.

European stocks advanced at mid-day, rebounding from two consecutive lower sessions. Stocks were boosted by a slide in oil prices, comparatively strong close on Wall Street, and upbeat earning reports from insurance and retail companies, such as Royal & Sun Alliance and Carrefour. A sharp 22% jump in the shares of drug maker Elan also lifted sentiment. The German DAX 30 climbed 0.9%, the French CAC 40 advanced 0.5%, and London FTSE 100 rose 0.6%. The Bank of England announced a decision to leave interest rates on hold at 4.5%, as expected.