ADVFN III Morning Euro Markets Bulletin
Daily world financial news from Thomson Financial News Supplied by advfn.com
27 May 2008 09:52:18
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London
London shares higher early on after a rally in Asia; SABMiller up on M&A talk
At 9:01 a.m., the FTSE 100 index was up 21.5 points at 6,180.8, although the FTSE 250 index fell 10.6 points at 10,067.0.
With Wall Street also closed yesterday for the Memorial Day holiday, pre-weekend the DJIA ended down 145.99, or 1.16 percent, to 12,479.63 Friday. Broader stock indicators also declined. The Standard & Poor's 500 index fell 18.42, or 1.32 percent, to 1,375.93, and the Nasdaq composite index slid 19.91, or 0.81 percent, to 2,444.67.
Today in Asia, Japan's Nikkei 225 index ended up 203.12 points or 1.5 percent at 13,893.31, while Hong Kong's Hang Seng Index ended its morning session up 147.31 points or 0.6 percent at 24,274.62. And oil prices in Asian trade was trading around $133 in early Asia on Tuesday after news of more violence in key African exporter Nigeria.
New York's main oil futures contract, light sweet crude for July delivery, climbed 81 cents to $133.00 per barrel after the U.S. Memorial Day holiday on Monday.
The benchmark contract had settled at $132.19 a barrel on Friday. London's Brent North Sea crude for July delivery was trading 49 cents higher at $132.86 a barrel. The rise in prices aided oil stocks, with Cairn Energy up 71 at 3,514, Tullow Oil 14 higher to 935-1/2 and BG Group up 15 to 1,325.
Miners helped to underpin gains, rallying after a weak performance last week, and as metals prices remained steady. Vedanta Resources added 66 to 2,643, Anglo American added 81 to 3,453, Antofagasta rose 17-1/2 to 711 and Rio Tinto gained 107 to 6,406.
However, SABMiller was the top riser, up 62 at 1,286, after various weekend press reports suggested Inbev is weighing moves to consolidate its share of the global beer market, with Anheuser-Busch and SABMiller cited as possible targets.
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The brewer was given a further boost as ING raised its price target to 1,550 pence from 1,500.
Following results today Vodafone added 3.2 at 166.5, earlier the group posted group revenue of 35.5 billion pounds for the year ending March 31, an increase of 14.1 percent and organic growth of 4.2 percent coming in slightly higher than the market consensus, while Merrill Lynch offered support by repeating its 'buy' view this morning.
The group also said its chief executive Arun Sarin is to leave the group after five years at the helm and will be replaced by deputy chief executive Vittorio Colao.
Meanwhile, Cable & Wireless added 2.8 pence at 165.8 after Goldman Sachs raised its stance to 'buy' from 'hold' following recent results. Compass Group rose 5-1/2 to 367-1/4, aided by Credit Suisse upping its price target to 425 pence from 415 following the group's results earlier this month.
On the downside, GlaxoSmithKline fell 10-1/2 pence to 503-1/2 as Morgan Stanley cut its stance to 'underweight' from 'equal-weight' and its price target to 1,060 pence from 1,161 today, as the broker believes there is significant risk to expectations for US Cervarix approval in 2009.
The retailers suffered this morning, as a miserable Bank Holiday Weekend weather wise dampened sentiment.
Home Retail Group lost 6-1/4 at 225, Kingfisher dropped 1.9 at 138.1, Next lost 15 at 1,188 and M&S gave away 2-1/2 at 391. On the second line, Northern Foods added 2-1/4 at 88-1/4 after well received numbers.
Full-year pretax profit hit 50.1 million pounds compared with 40.0 million in 2006/07 as the group continued its strategy of eliminating low margin business, while Numis said it was encouraged by the margin expansion and repeated its 'add' stance.
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On the 250 downside, Aricom fell 4-3/4 pence to 89 after it confirmed this morning it will need in excess of $1 billion in external funds to develop its K&S and Garinskoye iron ore projects in Russia.
Full year results from the engineering data and design IT systems provider Aveva failed to impress investors, as shares fell 34 to 1,228.
And, independent reinsurance and risk intermediary Benfield Group Ltd. fell 5 to 259 after it said it has invested $50 million cash into Juniperus Insurance Opportunity Fund, managed by Juniperus Capital Ltd.
On the macro front, the UK CBI service sector survey was released overnight, with the UK services sector taking a knock over the last three months as profitability fell at a record pace for some parts of the sector.
UK BBA April mortgage lending numbers are due later today, and these are expected to bring more bad news on the housing front with mortgage lending and approvals seen weaker than the previous month.
Although of more interest will be Thursday's May Nationwide UK house price survey, seen dropping 0.5 percent from April and by 1.9 percent from a year ago.
Across the Atlantic, after Friday's US existing home sales numbers, April US new homes sales will be a focus today together with May consumer confidence figures.
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Paris
Paris shares TFN market data at 10.30 a.m.; autos slide again
Major indices:
CAC-40 down 35.02 points or 0.71 percent at 4,902.82
SBF-80 down 23.52 or 0.41 percent at 5,708.24
SBF-120 down 24.58 or 0.69 percent at 3,559.05
6 CAC-40 stocks up
24 CAC-40 stocks down
Major gainers:
Suez up 0.56 or 1.27 percent at 45.16 as path clears for merger with GDF Gaz de France up 0.08 or 0.19 percent at 41.87
France Telecom up 0.19 or 0.93 percent at 20.61 NRJ Group up 0.09 or 1.47 percent at 6.20, press report says has several candidates to buy Towercast unit
Major losers:
ArcelorMittal down 1.23 or 1.93 percent at 62.65 Michelin down 0.85 or 1.47 percent at 58.62 amid persistent gloom on sector
Renault SA down 1.15 or 1.85 percent at 60.94 Valeo down 0.45 or 1.79 percent at 24.74, adding to a string of losses
Most active stock
Credit Agricole SA, 2.8 million shares trade as stock goes ex-div
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Milan
Milan shares TFN market data at 9.41 a.m.: Fiat, Intesa rebound, BPM weak
Main indices:
Mibtel at 25,387 points, up 0.29 percent
S&P/Mib at 32,860 points, up 0.29 percent
Main S&P/Mib gainers
Intesa Sanpaolo up 1.44 percent at 4.2025 euros Fiat up 1.03 percent at 14.33 euros, recovering after several days of weakness
Pirelli up 1.01 percent at 0.5485 euros. The group does not rule out new tyre price increases in the third and fourth quarters if the price of raw materials continues to rise and said it aims to increase tyre sales in Germany to 1 billion euros in 2010 from 850 million euros in 2007
Buzzi Unicem up 0.98 percent at 18.72 euros Telecom Italia up 0.85 percent at 1.424 euros after better-than-expected results for Vodafone
Main S&P/Mib losers
Banca Popolare di Milano down 1.42 percent at 7.06 euros
Geox down 1.13 percent at 7.90 euros
Seat Pagine Gialle down 0.80 percent at 0.1118 euros
Finmeccanica down 0.52 percent at 19.25 euros.
A2A down 0.47 percent at 2.525 euros
Other stocks in the news
Credem up 0.65 percent at 6.805 euros with reports saying the Maramotti family is ready to hike its stake in the bank by subscribing to 73 percent of a 250 million euros capital increase
Atlantia up 0.22 percent at 22.90 euros on the day parliament is expected to vote on an amendment which clears last October's tariff convention between the group and motorway agency ANAS
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Amsterdam
Amsterdam shares TFN market data at 10.26 a.m. - lower, early gains reversed
MAJOR INDICES
AEX 473.26 points, down 5.03 points or 1.05 percent
AMX 662.34 points, down 3.18 points or 0.48 percent
Government bonds mainly lower
MAJOR DECLINERS
ArcelorMittal down 1.91 percent at 62.64 euros
Randstad down 1.29 percent at 26.81 euros
Aegon down 1.29 percent at 9.37 euros to lead financials lower Heijmans down 1.84 percent at 19.19 euros USG People down 1.71 percent at 14.41 euros as Petercam cut its price target to 17.50 euros from 18.50 euros and maintained its rating at 'hold' keeping a cautious stance due to the uncertainty of how staffing markets will develop
Wereldhave down 0.94 percent at 77.83 euros; started as 'hold' by Citigroup, with a target 81 euros as it sees sees little upside in the short-term
VastNed Offices/Industrial down 0.24 percent at 20.95 euros; Rabo maintained its 'hold' rating as it said the company's relatively sizeable acquisition in Germany does not change its cautious stance on the stock
MAJOR GAINERS
SBM Offshore up 1.05 percent at 25.11 euros'; upped to 'buy' from 'hold' at ING with a raised price target of 30 euros versus 22. The broker believes the Dutch oil services company is on the verge of winning orders in excess of $2 billion
Ahold up 0.32 percent at 9.49 euros KPN up 0.09 percent at 11.60 euros as peer Vodafone results pleased and amid reports Capgemini is interested in acquiring parts of Getronics that KPN is planning to divest
Vopak up 1.32 percent at 45.40 euros Ten Cate up 1.38 percent at 23.50 euros; Petercam raised its price target to 28.5 euros from 27 to better reflect the long-term upside, but kept the stock at a 'hold'
Forex
London 0810 GMT Tokyo 0400 GMT
U.S. dollar
yen 103.84 up from 103.32
Swiss franc 1.0269 up from 1.0234
Euro
U.S. dollar 1.5748 down from 1.5786
yen 163.56 up from 163.09
Swiss franc 1.6175 up from 1.6158
pound 0.7978 up from 0.7964
Pound
U.S. dollar 1.9743 down from 1.9816
yen 205.00 up from 204.73
Swiss franc 2.0273 down from 2.0279
Australian dollar
U.S. dollar 0.9593 down from 0.9613
pound 0.4859 up from 0.4850
yen 99.59 up from 99.30
