European Sentiment Improves; Ruble Falls

Mayank Mehta
29 Mar, 2010
New York City

European markets closed lower and an index of business and consumer sentiment reached a 22-monthh high. Greece is preparing to launch 7-year bonds. Ruble declined after two terrorist attacks in Moscow.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower and an index of business and consumer sentiment reached a 22-monthh high. Greece is preparing to launch 7-year bonds. Ruble declined after two terrorist attacks in Moscow.[/R]

The index of consumer and business sentiment in the euro zone of 16 nations increased in March to 97.7 from 95.9 in February, the European Commission statistics office said today.

The index read is the highest since May 2008.

Greece is expected to begin selling its 7-year bonds as early as next week. Greece is facing bond repayment of 15.5 billion euros by the end of May and 53 billion euro bonds by the end of the year.

In London FTSE 100 Index closed lower 12.15 or 0.21% to 5,690.87, in Paris CAC 40 Index decreased 6.10 or 0.15% to close at 3,982.83, in Frankfurt DAX index higher 15.57 or 0.25% to close at 6,135.62. In Zurich trading SMI decreased 8.69 or 0.13% to close at 6,830.26.

The ASE Index in Athens declined 0.5% after Greece prepares to sell 7-year bonds after the EU nations and the IMF agreed to provide emergency assistance if needed.

Ruble in Moscow trading declined as much as 1.1% but closed lower 0.4% to 39.75 against the euro after two terror attacks on Moscow subway stations. Micex index declined 0.4%.

Federal Securities Services said one suicide bomber blew herself up at the Lubyanka station at 7:57 a.m. local time and the second exploded her device at 8:37 a.m. at Park Kultury station. At least thirty eight people have been killed and several more are injured.

Standard & Poor’s affirmed the AAA rating for the UK debt with negative outlook and the rating agency said that the recent budget plans to lower deficit are not specific enough.

The rating agency plans to review the debt again after the 2010 election.

Gainers & Losers

Bollore SA added 0.7% to €124.90 an investment company said 2009 revenues fell 17% to €6.01 billion from €7.22 billion a year ago. Net profit for the year rose 88% to €94 million compared to net profit of €50 million a year ago.

Commerzbank AG fell 0.1% to €6.67.

Deutsche Lufthansa AG rose 0.5% to €12.49 and the airline after a 20-year gap is resuming flights to Iraq on April 25.

Etablissments Maurel & Prom SA surged 5.3% to €12.28 after French energy explorer said oil production in Gabon has increased substantially.

Fondiaria-SAI SpA an insurer said 2009 revenues rose 15% to €14.7 billion from €12.8 billion a year ago. Net loss for the year was €342.6 million or €3.28 per diluted share compared to net profit of €87.4 million or €0.55 per share a year ago.

Hochtief AG climbed 3.0% to €63.65 after the global construction group and Russian VIP Group plan to invest about €200 million to complete the Khrabrovo Airport.

Man SE dropped 0.2% to €63.30 after the engineering group expects business to pick up next year but it would be some time before sales recover to pre-crisis levels, its chief executive told a German newspaper.

Munich RE the reinsurer rose 0.6% to €120.60.

OHB Technology AG the aerospace company fell 1.2% to €17.00.

Praktiker Bau und Heimwerkermaerkte Holding AG rose 4.3% to €7.79 after the home-improvement retailer was upgraded to “buy” from “hold” at Deutsche Bank AG.

Salzgitter AG the steelmaker rose 0.4% to €69.25.

ThyssenKrupp AG the steelmaker added 1.4% to €26.05.