Greece Bailout Talks Lifts European Markets

123jump.com Staff
01 Mar, 2010
New York City

European markets indexes closed up 2% on a speculation that Greece is inching closer to a bailout package of

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets indexes closed up 2% on a speculation that Greece is inching closer to a bailout package of €25 billion. Euro area unemployment rate in January was unchanged at 9.9%. Merck KGaA agreed to acquire Millipore Corp for $6 billion.[/R]

European markets closed higher after a rally in resource stocks and commodities. Investors bid up bonds on a speculation that Greece is inching closer to arranging a bailout package from France and Germany.

Media reports in Frankfurt suggest that lawmakers are close to arranging a purchase of Greek bonds purchase through state controlled lender of as much as €25 billion.

European Union Monetary Affairs Commissioners Oil Rehn after a meeting with Prime Minister George Papandreou urged Greece to finalize the details of budget cuts.

In London FTSE 100 Index closed higher 51.42 or 0.96% to 5,405.94, in Paris CAC 40 Index increased 60.74 or 1.64% to close at 3,769.54, in Frankfurt DAX index higher 115.05 or 2.06% to close at 5,713.51. In Zurich trading SMI increased 80.49 or 1.20% to close at 6,791.48.

Euro area January seasonally adjusted unemployment rate was 9.9%, unchanged from December 2009 and increased from 8.5% in January a year ago. Compared with January 2009, unemployment increased 3.802 million in the EU27 and by 2.204 million in the euro area.

Prudential Plc agreed to acquire Asian life insurance unit of American International Group Inc for $35.5 billion.

Prudential will pay $25 billion on cash and $10.5 billion in securities and stock. Prudential will raise $20 million in a rights offering and $5 billion in bond offering.

Gainers & Losers

Adidas AG rose 2.5% to €37.32 after the sporting goods maker was upgraded to “hold” from “sell” at Deutsche Bank AG.

Air France-KLM added 1.1% to €9.92 after the airline, the first A380 superjumbo operated by Air France was forced to turn back to New York mid-flight on Monday because of a fuelling problem, the plane''s fourth glitch in as many months, the airline said.

Bayer AG rose 1.6% to €49.46 after the drug and chemical maker was downgraded to “neutral” from “outperform” at Credit Suisse Group AG.

Carrefour SA rose 1.7% to €34.47 after the retailer 116 stores in Belgium were closed Feb 27 because of a strike over planned job cuts, a company spokesman said.

Deutsche Bank AG rose 1.0% to €47.17 after the bank was upgraded to “market perform” from “underperform” at Sanford C. Bernstein & Co.

Electricite de Strasbourg SA rose 0.8% to €37.11 after Macquarie Infrastructure and its partners will likely bid on French power giant Electricite de France''s U.K. electricity distribution network.

ElringKlinger AG the automotive equipment supplier rose 1.3% to €17.30.

GDF Suez SA climbed 1.1% to €27.28 after the natural gas distributor plans nuclear plant for Rhone Valley.

Ipsen SA dropped 3.7% to €35.88 after the drug maker announces total drug sales and specialty care Sales up 7.6% and 13.9% at constant currency respectively.

Krones AG fell 2.8% to €37.50 after the bottling and packaging equipment was downgraded to “neutral” from “buy” at Bank of America Merrill Lynch Global Research.

Safran SA the maker of aircraft engines fell 0.4% to €17.20.

Societe Generale SA rose 1.4% to €40.97 after the bank was downgraded to “market perform” from “outperform” at Sanford C. Bernstein & Co.

Total SA increased 0.8% to €41.32 after the oil refiner was downgraded to “neutral” from “buy” at Bank of America-Merrill Lynch Global Research.

Vivendi SA climbed 3.4% to €19.14 after the pharmaceutical and medical products company said 2009 revenues rose 7% to €27.1 billion from €25.4 billion a year ago. Net profit for the 2009 fell 68% to €830 million or €0.69 per diluted share compared to net profit of €2.60 billion or €2.23 per share a year ago.

DAX Index Movers

Commerzbank AG led the decliners in the DAX index of 0.04%.

Adidas AG led gainers in the DAX index with a rise of 4.95%, followed by increase in Fresenius Medical Care AG & Co. KGaA of 3.70%, in Bayer AG of 3.63%, in Fresenius SE of 3.45%, and in Merck KGaA of 3.12%.

CAC-40 Index Movers

Dexia SA led the decliners in the CAC-40 index of 0.55%.

Bouygues SA gainers in the CAC-40 index with a rise of 4.14%.followed by increase in Carrefour SA of 3.64%, in Alcatel Lucent of 3.50%, in Accor SA of 3.24% and in Vinci SA of 3.04%.