ADVFN III Morning Euro Markets Bulletin
Daily world financial news from Thomson Financial News Supplied by advfn.com
04 Jun 2008 10:16:01
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London
London shares open lower after falls on Wall St; ex-divs drag FTSE down
At 8:54 a.m., the FTSE 100 index was down 66.6 points at 5,991.1, while the FTSE 250 index lost 65.7 points at 9,921.2. In the U.S. markets, the DJIA fell 100.97 points, or 0.81 percent, to 12,402.85, after being down more than 160 points earlier.
Broader market indexes were also lower. The Standard & Poor's 500 index dropped 8.02, or 0.58 percent, to 1,377.65, while the Nasdaq composite index fell 11.05, or 0.44 percent, to 2,480.48.
Today in Asia, Japan's Nikkei 225 index closed up 226.40 points at 14,435.57, while Hong Kong's Hang Seng Index ended its morning session down 58.90 points at 24,316.86.
And oil prices fell in Asian trade after Fed boss Ben Bernanke said the U.S. central bank was being "attentive" to the sagging dollar because of its potential impact on inflation.
New York oil prices had fallen a hefty $3.45 Tuesday, while London's Brent North Sea crude for July delivery lost 43 cents to $124.15 a barrel.
In London, stocks trading ex-dividend took 14.8 points off the FTSE Wednesday, including National Grid which fell 24 to 724-1/2, Enterprise Inns, down 13 at 446-3/4 and Vodafone, the biggest blue chip faller, down 6.55 to 156.2.
Blue chip oilers fell back, tracking crude price falls. BP fell 12-1/2 to 592 and Royal Dutch Shell gave away 39 at 2,045. It was a similar story with miners, as metals prices dropped. Vedanta Resources lost 40 to 2,384, Antofagasta fell 16 at 673 and Xstrata gave away 75 to 3,970.
Elsewhere, the housebuilders performed poorly, primarily due to a bearish note from UBS. Persimmon shares fell 16 pence to 440 after being downgraded to 'sell' from 'neutral' at UBS this morning, while midcap peers Redrow and Bellway lost 15-1/4 to 208 and 25-1/2 at 577-1/2 respectively, following the same downgrade.
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Continuing in broker related movements, Man Group fell 10-1/2 to 614 after Investec cut its rating to 'hold' from 'buy'. It was a mixed picture for banks, with sentiment hit by a 10 percent drop in Lehman Brothers share price on talk it needs to raise capital.
HBOS shares fell 11-3/4 pence at 340 after saying trading in its rights issue nil-paid shares is expected to begin on June 27.
Sector peer Barclays was 7 lower at 353-1/4. However a Morgan Stanley upgrade sparked buying in Royal Bank of Scotland as the broker raised its view to 'overweight' from 'underweight', on valuation grounds. RBS shares were up 2 at 246-3/4.
Elsewhere on the upside, Kingfisher rose 0.9 at 139.7 after the company reported Wednesday a better-than-expected 8.9 percent increase in first quarter retail profit, with Seymour Pierce upgrading its stance to 'hold' from 'sell' in reaction.
Ahead of May traffic figures due at 2:15 p.m British Airways added 1-3/4 to 232-1/2. On the second line, away from the housebuilders, a bullish trading statement from IG Group couldn't stop shares falling 10 to 380, dragged down with the weak performing financial sector.
The top midcap riser was Cattles, adding 5 to 177-1/4 as investors reacted positively to news it received valid acceptances in respect of about 157.92 million new Cattles shares in its rights issue.
In macroeconomic news, Nationwide data showed consumer confidence in the UK plumbed new depths in May as worries about the outlook for the economy continued to mount, Nationwide building society said.
Nationwide's consumer confidence survey for May fell to 69, the lowest figure since polling began in May 2004. The previous all time low was set last month, at 70.
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UK Diary of Events:
For a diary of key financial and corporate events in the UK today, Click here
US Summary:
For a summary of US stocks at yesterday's close of trade, Click here
Brussels
Brussels shares TFN market data at 10.00 a.m.
Main index
Bel 20 down 17.6 points or 0.47 percent at 3,717.96
Bel 20 fallers
Umicore down 0.42 euro or 1.17 percent at 35.60 euros
Suez down 0.27 euro or 0.57 percent at 47.47 euros
KBC Group down 0.81 euro or 1.05 percent at 76.51 euro
Fortis down 0.15 euro or 0.97 percent at 15.30 euros
Dexia down 0.10 euro or 0.67 percent at 14.75 euros
Delhaize down 0.34 euro or 0.67 percent at 50.55 euros
Bel 20 gainers
Agfa-Gevaert was up 0.14 euro or 2.63 percent at 5.26 euro. Shareholder activist group Deminor has entered into the share capital of the group. It can acquire up to a 0.80 percent stake
InBev down 0.95 euro or 2.07 percent at 46.75 euros
Outside the Bel 20
CMB down 1.11 euros or 2.49 percent at 43.39 euros
Tessenderlo down 0.23 euro or 0.64 percent at 35.47 euros. The chemical
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Paris
Paris shares TFN market data at 10:40 am; shares tumble, led by banks, autos
Major indices:
CAC-40 down 92.37 points or 1.85 percent at 4,891.34
SBF-80 down 65.69 or 1.14 percent at 5,719.03
SBF-120 down 63.58 or 1.76 percent at 3,553.34
3 CAC-40 stocks up
37 CAC-40 stocks down
Major gainers:
Carrefour, up 0.22 euros or 0.48 percent at 45.60, extending Tuesday's gains
Major losers:
Bouygues, down 2.82 or 5.48 percent at 48.63 after posting in-line first quarter earnings. Exane cut its stance on the stock to 'neutral' from 'outperform'
Societe Generale, down 3.03 or 4.68 percent at 61.70; BNP Paribas, down 1.58 or 2.45 percent at 62.79; Credit Agricole, 0.42 or 2.49 percent lower at 16.45. Traders highlighted a report by Fitch saying SocGen, BNP Paribas and Barclays will need to raise additional capital. Rumours also emerged of an additional $10 billion of writedowns at Merrill Lynch
Michelin, down 1.75 or 3.19 percent at 53.16. Societe Generale downgraded the tyre-maker to 'hold' from 'buy' Renault, down 1.31 or 2.02 percent at 63.42; Peugeot, down 0.89 or 2.22 percent at 39.16. Societe Generale cut Renault to 'hold' from 'buy' and Peugeot to 'sell' from 'buy'
Most active stocks:
Alcatel-Lucent, down 0.10 or 2.04 percent at 4.80. 3.70 million shares traded Total, down 1.34 or 2.40 percent at 54.57. 2.70 million shares traded
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Frankfurt
German shares TFN market data at 9:37 a.m.
DAX - down 69.60 points, or 0.99 percent, at 6,949.53
MDAX - down 63.73 points, or 0.66 percent, at 9,664.43
TecDAX - down 8.94 points, or 1.02 percent, at 870.08
DAX futures - down 20.00 points, or 0.29 percent, at 6,962.00
MAJOR DECLINERS:
Continental down 2.09 euros or 2.76 percent at 73.70 after Societe Generale Securities downgraded the automotive parts and tyre maker to 'sell' from 'buy.'
The broker pointed out costs look set to rise significantly after a sudden 50 percent surge in the steel spot price in euro terms over the last two months.
Thyssenkrupp down 0.88 euros or 1.99 percent at 43.27, after Lehman Brothers reinitiated the stock with an 'overweight' rating.
Linde down 1.85 euros or 1.92 percent at 94.42 as the stock traded ex-dividend, after Linde paid out 1.70 euros per share to its stockholders.
SAP down 0.52 euros or 1.46 percent at 34.99 as the stock also traded ex-dividend, after SAP paid out 0.50 euros per share to its stockholders. Daimler down 0.62 euros or 1.29 percent at 47.37.
MAJOR GAINERS:
Lufthansa up 0.05 euros or 0.31 percent to 16.26, as oil prices eased slightly. Merck up 0.15 euros or 0.17 percent at 89.55.
OTHER STOCKS IN THE NEWS:
MDAX-listed K&S up 6.73 euros or 2.13 percent at 322.89 to lead to the MDAX, after Credit Suisse raised its stance to 'outperform' from 'neutral' and lifted its target to 388 euros per share from 276 euros on the back of the fertilizer and industrial salts specialist increasing its 2008 EBIT guidance.
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Amsterdam shares TFN market data at 10.41 a.m. - lower, led by Shell, financials
MAJOR INDICES
AEX 476.57 points, down 7.33 points or 1.51 percent
AMX 670.39 points, down 9.62 points or 1.41 percent
Government bonds mixed
MAJOR DECLINERS
Royal Dutch Shell down 2.74 percent at 26.30 euros, tracking the decline in the price of crude Aegon down 2.47 percent at 9.59 euros to lead financials down amid continued credit crisis worries
Akzo Nobel down 0.35 percent at 51.72 euros; off early gains as Rabo Securities said the profit warning from peer Sherwin-Williams on Tuesday has a limited readthrough. Amsterdam trader said Akzo Nobel's losses on Tuesday were "overdone"
Corporate Express down 0.11 percent at 8.92 euros; cut to 'sell' from 'buy' at ING, which sees Staples likely winning the bidding war for the company
Fugro down 2.98 percent at 56.56 euros
AMG down 2.74 percent at 62.55 euros
ASMI down 1.99 percent at 16.26 euros amid reports it will re-enter talks with activist shareholders on Wednesday and Thursday
MAJOR GAINERS
KPN up 0.09 percent at 11.60 euros
Nutreco up 0.23 percent at 48.05 euros
Forex
London 0815 GMT Hong Kong 0500 GMT
U.S. dollar
yen 104.86 down from yen 105.10
Swiss franc 1.0414 up from Swiss franc 1.0413
Euro
U.S. dollar 1.5442 down from U.S. dollar 1.5458
yen 161.93 down from yen 162.52
Swiss franc 1.6082 down from Swiss franc 1.6098
pound 0.7894 up from pound 0.7873
Pound
U.S. dollar 1.9561 down from U.S. dollar 1.9631
yen 205.08 down from yen 206.41
Swiss franc 2.0371 down from Swiss franc 2.0440
Australian dollar
U.S. dollar 0.9589 up from U.S. dollar 0.9566
pound 0.4902 up from pound 0.4871
yen 100.42 down from yen 100.56
