ADVFN III Morning Euro Markets Bulletin
Daily world financial news from Thomson Financial News Supplied by advfn.com
16 Apr 2008 09:50:23
London
London shares firmer early on after New York gains; strength among miners
At 9:11 a.m., the FTSE 100 index was up 29.6 points at 5,936.5, with the FTSE 250 index 72.6 points ahead at 9,976.8.
Overnight, Wall Street closed the session higher, after stronger-than-expected New York region manufacturing data, which helped ease concerns about the U.S. economy. Investors were also encouraged by earnings news from Johnson & Johnson and Intel Corp.
The Dow Jones Industrial Average closed up 60.41 points at 12,362.47. Broader stock indicators also advanced. The Standard & Poor's 500 index rose 6.11 points to 1,334.43, while the Nasdaq composite index added 10.22 points to 2,286.04.
Mixed signals came from Asia on Wednesday, with the Nikkei 225 index up 155.55 points at 13,146.13, while the Hang Seng reversed earlier gains, and was down 28.52 points at 23,872.81.
Oil prices eased in Asian trade ahead of a key report on U.S. energy stockpiles. In afternoon trade, New York's main oil contract, light sweet crude for delivery in May, was 20 cents lower at $113.59 a barrel. The contract earlier topped $114 for the first time, hitting $114.08 after floor trading closed on Tuesday at the New York Mercantile Exchange.
Brent North Sea crude for June delivery was 32 cents lower at $111.26 a barrel. Brent for May expired on Tuesday at a record $111.31 after reaching an intra-day high of $112.08.
Back with UK equities, miners featured on the FTSE 100 leaderboard. Rio Tinto said on Wednesday its iron ore sales reached record levels in the first quarter though production was lower than the final quarter of 2007 after its Western Australian operations were disrupted by cyclonic weather and power outages.
City Index
CFDs and Spreadbetting with City Index - The next way to trade. Speculate on different equities, indices and commodities - all from a small outlay. Click here to find out more
The world's third-largest miner said aluminium output was at a new high during the quarter, reflecting the first full-quarter contribution from Canada's Alcan Inc., which Rio took over last year in a $38.1 billion deal.
Rio Tinto shares rallied 65 pence to 6,071, while Eurasian Natural Resources gained 40 pence to 1,300, Lonmin took on 75 pence to 3,180, Kazakhmys was up 39 pence at 1,713, BHP Billiton added 29 pence to 1,799, and Vedanta Resources was 52 pence ahead at 2,426.
Banks were also in favour, following quarterly results from U.S. banks on Tuesday, and with investors looking ahead to earnings, from the likes of JP Morgan and Citi, with all eyes on whether there will be further writedowns.
Royal Bank of Scotland added 8-3/4 pence to 357-1/4, with Barclays up 11-1/2 pence at 460-1/2, HBOS 9 pence ahead at 523-1/2, and Lloyds TSB adding 5-1/4 pence to 432-1/4.
These gains come as UK Prime Minister Gordon Brown is set to meet Wall Street bankers.
But it was Experian that led the blue chips higher, up 6.74 percent, or 24 pence at 380, after the world's largest credit checking company revealed second-half organic revenue growth of 2 percent, which Merrill Lynch said was better than expected.
Elsewhere, Morrison climbed 4-1/2 pence to 288, after Deutsche Bank upgraded its rating to 'buy' from 'hold'.
A broker upgrade also helped lift shares in AstraZeneca, up 8 pence at 2,130, as ING lifted its rating to 'hold' from 'sell', while raising its price target on the stock to 2,200 pence from 1,760 pence.
The Finspreads Trading Academy
You've probably heard about spread betting - but maybe the risks have put you off. The Finspreads Trading Academy, the most popular way into the world of spread betting, takes you through the whole subject from a keen amateur's point of view. So don't be startled by spread betting - get started. Click Here
Turning to the casualties Legal & General shares were lower, off 5.1 pence at 125.8, after the company posted first-quarter worldwide new business of 372 million pounds compared with 368 million a year ago, but warned that volatility in investment markets is causing some deferral of individual annuity purchases, and that the savings market is tougher in 2008 than in 2007.
Merrill Lynch reiterated its 'neutral' rating on L&G in reaction.
Also on the back foot was SABMiller, down 13 pence at 1,091, after the drinks giant said fourth-quarter volume growth continued to slow, particularly in China and Latin America, while full-year organic growth in lager volume growth increased 7 percent for the year.
On the second tier, Aveva was the stand out gainer, up 46 pence at 1,136, as the group said it expects full-year results to be slightly ahead of current market consensus expectations as levels of demand have remained consistent in its target markets across all geographies.
Meanwhile, strength was seen among housebuilders, with Bellway and Redrow up 20-1/2 pence at 781, and 7-3/4 pence at 285-1/2, respectively, following recent losses.
On the downside, Aquarius Platinum topped the loserboard, off 46-1/2 pence at 804, with UBS cutting its rating to 'neutral' from 'buy' following recent strong gains in the share price.
UK Diary of Events:
For a diary of key financial and corporate events in the UK today, Click here
Fat Prophets Trading Report – Free Trial
Concise, independent (we're not brokers) and transparent Spread Bet and CFD trade recommendations. Fat Prophets professional trading team has over 40 years combined experience trading currencies, commodities, equities and bonds. Our goal is simple...to make you money. Free trial Click here.
Milan
Milan shares TFN market data at 9.22 a.m.; Parmalat slumps in rising market
Main indices:
Mibtel at 25,055, up 0.61 percent
S&P/Mib at 32,925, up 0.58 percent
Main S&P/Mib gainers:
Banca Popolare di Milano up 2.81 percent at 7.76 euros after reports that activist investment fund Algebris has bought a stake of nearly 2 percent in the cooperative bank
STMicroelectronics up 2.31 percent at 6.765 euros, rebounding after recent weakness and helped by better than expected first quarter results from Intel overnight Telecom Italia up 1.87 percent at 1.417 euros rebounding after recent weakness
Banca Monte dei Paschi di Siena up 1.62 percent at 2.6725
Bulgari up 1.59 percent at 6.96 euros
Main S&P/Mib losers
Parmalat down 6.11 percent at 2.23 euros after a New Jersey court judge scaled down the number of requests and damages claimed by the group against Citigroup over its alleged role in Parmalat's 2003 collapse. The trial against Citigroup will begin on May 5
Impregilo down 0.71 percent at 3.615 euros
Atlantia down 0.56 percent at 21.14 euros
Lottomatica down 0.53 percent at 3.62 euros
Prysmian down 0.49 percent at 14.64 euros
Other stocks in the news
Tiscali up 7.67 percent at 2.26 euros after setting May 5 as the deadline to present non-binding bids for the company or its assets, with bidders including News Corp.'s satellite television unit Sky. Also studying the offer is Vodafone while BT and Carphone Warehouse could be interested in the UK assets
GCI Trading
Trade Forex, Indices and Shares with zero commissions and 1% margin. Live dealing prices stream into GCI's state-of-the art trading software. Just click on a price to trade currencies, S&P 500, Dow Jones Industrials, DAX 30, Nikkei 225, IBM, Vodafone, Microsoft, and much more. To register for a free demo account Click Here
Frankfurt
German shares TFN market data at 9.20 a.m.
DAX - up 50.29 points, or 0.76 percent, at 6,635.34
MDAX - up 75.92 points, or 0.86 percent, at 8,974.75 points
TecDAX - up 13.93 points, or 1.74 percent, at 812.37 points
DAX futures - up 14.50 points, or 0.22 percent, at 6,690.52
Major Underperformers:
Henkel, down 0.27 euro, or 0.98 percent, at 27.42
Deutsche Boerse, down 0.17 euro, or 0.18 percent, at 93.37
Volkswagen, up 0.04, or 0.02 percent, at 180.35
RWE, up 0.07 euro, or 0.09 percent, at 77.10
Metro, up 0.06 euro, or 0.12 percent, at 49.28
Major Outperformers:
Infineon, up 0.28 euro, or 6.13 percent, at 4.85 on the back of Intel's Q2 forecasts. Hypo Real Estate, up 0.51, or 2.76 percent, at 18.98
Siemens, up 1.22 euros, or 1.77 percent, at 70.30
Adidas, up 0.65 euro, or 1.60 percent, at 41.24
Commerzbank, up 0.28 euro, or 1.36 percent, at 20.90
Other stocks in the news:
MDAX-listed Arques Industries AG. said it will not propose a dividend for 2007 and instead will retain the profit "to develop and strengthen the current portfolio".
Selftrade
Open a Selftrade Dealing account, pay a flat £12.50 per trade Deal in UK and international equities, funds, bonds, covered warrants and Listed CFDs. Instant account funding via debit card. No account or inactivity fees. No dealing fee on fund purchases. Click here for more information.
Amsterdam
Amsterdam shares TFN market data at 10.10 a.m. - ASML leads decliners
MAJOR INDICES
AEX 456.77 points, up 3.49 points or 0.77 percent
AMX 632.47 points, up 6.38 points or 1.02 percent
Government bonds mainly lower
MAJOR GAINERS
ArcelorMittal up 1.90 percent at 54.26 euros. The steel giant said its 50-50 joint venture with Nippon Steel Corp., I/N Kote, will spend $240 million to expand its facility in New Carlisle, Indiana
TomTom added 1.43 percent to 20.58 euros as Deutsche Bank initiated coverage with a 'hold' rating and a 20 euro price target
Fortis added 0.49 percent to 16.50 euros. Fortis Investments chairman Richard Wohanka said its Asian operations will contribute more to group profit in 2010-2012 than its European operations, Belgian newspapers report.
Corporate Express was 0.42 percent stronger at 7.09 euros. The company said Wednesday it has sold its Dutch unit Veenman to Xerox for 43 million euros in cash.
MAJOR DECLINERS
ASML was off 0.79 percent at 15.07 euros as the market reacted to weak first-quarter bookings and a lowered full-year sales outlook
Heineken fell 1.46 percent to 37.71 euros, as Keijser Capital reduced its rating to 'reduce' from 'hold' and cut its target to 34 euros from 38
Forex
London 8.37 a.m. Hong Kong 1:00 p.m. (0500 GMT)
U.S. dollar
yen 101.62 down from 101.65
Swiss franc 1.0043 down from 1.0070
Euro
U.S. dollar 1.5841 up from 1.5799
yen 160.93 up from 160.62
Swiss franc 1.5912 unchanged 1.5912
pound 0.8034 down from 0.8047
Pound
U.S. dollar 1.9722 up from 1.9622
yen 200.34 up from 199.48
Swiss franc 1.9800 up from 1.9762
Australian dollar
U.S. dollar 0.9298 up from 0.9264
pound 0.4712 down from 0.4720
yen 94.41 up from 94.18
