European Indexes Rise 1%; Swiss Franc Firm

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

European markets generally added more than 1% at close. Global sentiment improved after Europe, China, India, Japan and Korea reported gains in manufacturing and exports. Swiss franc surged against the euro.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets generally added more than 1% at close. Global sentiment improved after Europe, China, India, Japan and Korea reported gains in manufacturing and exports. Swiss franc surged against the euro.[/R]

European markets closed higher after global sentiment improved and Asia reported better than expected economic data.

China manufacturing index surged at a faster pace and Japan said business sentiment sharply improved in March. Korea and India reported large gains in exports and manufacturing is now reached to pre-crisis level.

In London FTSE 100 Index closed higher 65.25 or 1.15% to 5,744.89, in Paris CAC 40 Index increased 60.22 or 1.52% to close at 4,034.23, in Frankfurt DAX index higher 82.01 or 1.33% to close at 6,235.56. In Zurich trading SMI increased 15.55 or 0.23% to close at 6,888.92.

Swiss franc surged to record 1.42 euros after it reported sharpest gain in manufacturing in March.

Europe’s manufacturing index expanded at the fastest pace in nearly 40 months and the UK index rose the most since December 2008.

In Japan business sentiment improved sharply according to the latest survey released by the government.

In the first quarter 20 European companies raised €4.5 billion and may raise as much as €40 billion in the year. The pace of initial public offering has been stronger than expected at the beginning of the year and may improve in the second half according to 123jump.com research.

Ryanair Holdings Plc surged as much as 9% after it said that net income in the year ending yesterday is estimated to be at least €310 million compared to previous estimate of €275 million.

Finnair Oyj said in a statement that the company and its pilots union have agreed to cut annual cost by €20 million. Finnair increased 3%.

Gainers & Losers

Air France-KLM the airline added 2.3% to €11.98 after the airline confirmed that it expects to breakeven the current year on an operating basis.

Aixtron AG rose 2.4% to €27.28 after the maker of equipment used to produce LED screens was upgraded “buy” in new coverage at UBS AG.

Alcatel Lucent SA rose 0.3% to €2.35 after the telecommunications equipment supplier was downgraded to “reduce” from “neutral” at WestLB.

Barry Callebaut AG the producer of cocoa, chocolate and confectionery products said first half revenues rose 4.5% to CHF2.66 billion from CHF2.54 billion a year ago. Net profit for the first half rose 1.4% to CHF145.6 million or CHF28.10 per diluted share compared to net profit of CHF143.6 million or CHF27.78 per share a year ago.

BMW AG climbed 3.0% to €35.22 after the maker of luxury cars was upgraded to “outperform” from “underperform” at Credit Suisse Group AG.

Eiffage SA the construction and engineering company added 1.2% to €38.77.

Manitou BF SA the crane and forklift manufacturer gained 5.5% to €11.40.

Michelin SCA dropped 2.2% to €53.33 after the tiremaker was downgraded its recommendation on to “hold” from “buy” at Deutsche Bank AG.

PPR SA the retailer rose 0.2% to €98.85.

Cie Financere Richemont SA increased 1.9% to Sfr 41.60 after the jewelry maker agreed to acquire the stocks it did not hold in the online fashion retailer Net-a-Porter LLC. The purchase price values the retailer at 350 million pounds.

SAP AG added 1.1% to €36.26 after the software company priced a two part bond through lead managers BNP Paribas SA, Deutsche Bank AG, ING Groep NV and JPMorgan Chase & Co. €500 million bond will mature on April 10, 2017 and the payment date will be April 8, Another €500 million bond will mature on April 10, 2014 and the payment date will be April 8, according to a report by Dow Jones.

Scor SE the insurer rose 1.0% to €18.90.

Sperian Protection SA surged 15.5% to €70.14 after the maker of protective gear, Essilor International SA announced that it has signed an agreement with the Cinven Investment Fund and Ginette Dalloz concerning the Company''s 15.05% stake in Sperian Protection.

Viel et Compagnie SA climbed 2.0% to €3.06 after the investment company engaged in the financial sector announced that it will propose a dividend of €0.15 per share for the full year 2009, during the shareholders meeting on June 3.

Volkswagen AG rose 0.9% to €68.51 after the carmaker was upgraded “buy” in resumed coverage at Bank of America Merrill Lynch Global Research.

DAX Index Movers

K+S AG led the decliners in the DAX index of 1.48%, followed by Deutsche Telekom AG of 0.40%, in Fresenius Medical Care AG & Co. KGaA of 0.25

Deutsche Lufthansa AG led gainers in the DAX index with a rise of 2.89%, followed by increase in BMW AG of 2.45%, in BASF SE of 2.16%, in Volkswagen AG of 2.16%, and in Metro AG of 1.80%.

CAC-40 Index Movers

Sanofi-Aventis led the decliners in the CAC-40 index of 0.05%.

Technip gainers in the CAC-40 index with a rise of 3.79%.followed by increase in ArcelorMittal of 3.72%, in Accor SA of 3.61%, in Lagardere SCA of 3.54% and in Vallourec SA of 3.25%.