ADVFN III Morning Euro Markets Bulletin
Daily world financial news from Thomson Financial News Supplied by advfn.com
29 Jul 2008 09:43:12
Sponsored by The Fleet Street Letter
The single greatest opportunity for British investors in 200 years
Find out how you could join them here*
London
London shares lower in early trade after Wall Street slump
At 8:59 a.m., the FTSE 100 was down 11.3 points lower at 5,301.3, having been down as much as 51.2 earlier in the session. On Monday, the FTSE 100 fell 40 points to close at 5,312.6. The FTSE 250 was down 101.6 points at 8,615.1.
In the United States on Monday, Wall Street again surrendered to investors' anxiety about the financial sector, sending the Dow Jones industrials back into bear market territory.
Financials that had rallied in recent weeks after logging huge declines suffered from the same worries about souring debt that caused an abrupt end to their run-up late last week. Wall Street is concerned a further withering of the housing and credit markets will damage bank balance sheets.
The Dow Jones Industrial Average fell 239.61, or 2.11 percent, to 11,131.08. Broader stock indicators also declined. The Nasdaq composite index also fell into bear market territory, shedding 46.31, or 2 percent, to 2,264.22. The Standard & Poor's 500 index, has been in bear territory for the past few weeks, declined 23.39, or 1.86 percent, to 1,234.37.
The downbeat mood continued in Asia this morning. Japan's Nikkei 225 Stock Average ended the day down 194.33 points, or 1.5 percent, at 13,159.45. Hong Kong's Hang Seng Index ended its morning session down 537.89 points, or 2.4 percent, at 22,149.32.
Back in the United Kingdom, banks were the biggest losers, following the trend set in tbe United States on Monday, when several heavyweights fell back, including Citigroup, down 7.5 percent on the day.
The declines for UK banks came despite HSBC raising its target for several of them. HSBC pointed to the weakness of the shares in the sector. It said the capital raising was nearly done.
paddypowertrader.com
Apply for an account today and you could get £75 (€100) free* There has simply never been a better time to spread bet than with paddypowertrader.com. paddypowertrader offers you the ability to trade 1000's of markets worldwide with some of the tightest spreads around. Click Here.
It upped its target on Royal Bank of Scotland to 260 pence, from 240, and retained its 'overweight' rating. It said the groups exposure to the mortgage market is minimal, adding that what really matters is the health of the corporate sector and, with the exception the housebuilding sector, this has held up reasonably well so far. It reiterated its 'underweight' on Barclays, while raising its target to 310 pence, from 270.
Barclays fell 23-1/2 pence to 315-1/4; HBOS was down 15-1/2 at 272, and Royal Bank of Scotland was down 11.65 at 194.6.
On the upside, index heavyweight BP was the top riser, up 11-1/2 at 531, after the company reported increased profits in the second quarter, buoyed by strong oil and gas prices.
Clean net profit, which strips out non-operating items, for the quarter to June rose to $8.628 billion from $5.515 billion, ahead of the consensus figure of $7.6 billion and forecast range of between $7.0 billion and $8.2 billion.
Production was 3.830 million barrels of oil equivalent per day, up from 3.804 million a year ago. Cazenove kept its 'outperform' on BP shares, noting "another unexpected quarterly dividend increase". With oil prices picking up slightly, other energy companies were also on the rise. Royal Dutch Shell, which reports on Thursday, was up 21 at 1,854.
Meanwhile, shares in Vedanta Resources were up 18 at 1,870 after the company's first-quarter results came in ahead of expectations. The company reported EBITDA of $739 million for the three months to June, up from $695.4 million in the corresponding period last year, despite lower zinc prices and rising energy and related costs
Concept-FX thrives as other Markets suffer!
£65,175 TAX-FREE Profit so far in 2008 (All trade results recorded on our website). To make a success of trading in these market conditions, you need to trade the right market and follow an established system that continues to make excellent profits to this day.
Click here to find out how: View a FREE demonstration or find out more today.
It also achieved record first-quarter production of 4.6 million tonnes of iron ore, up 57 percent. Morgan Stanley said the EBITDA number was 4 percent ahead of consensus, adding the main reason for the results beating forecasts was better-than-expected performance in the iron ore division. The broker retained its 'overweight' rating the shares.
Most other miners were also higher, as metals prices rose. Antofagasta was up 7-1/2 at 547-1/2. Anglo American was 36 higher at 2,786.
Among the midcaps, several companies found their results were badly received by the market.
Chip maker CSR was sharply lower after it reported a drop in pretax profit to $22.7 million for the second quarter of 2008 from $44.0 million a year earlier, in line with expectations.
The company said it expects "no alleviation in macro economic pressures". The shares fell 16-1/4 to 223.
Wealth management group St. James's Place was 12-1/4 lower at 197-1/4 after it reported that operating profit for the six months to June 30 came in at 114.2 million pounds, down from 120.7 million pounds in the same period last year.
Car dealership company Inchcape fell 14-1/4 to 281-1/2, despite reporting that first-half pretax profit rose to 130.3 million pounds, from 124.8 million.
Specialty chemicals company Croda International bucked the trend and was 14-1/2 higher at 675 after reporting a 64.1 percent rise in first-half profit before tax and exceptionals, including discontinued activities, and saying it was confident of making further progress in the rest of the year.
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
Paris
Paris shares TFN market data; Alcatel-Lucent rises on management departures
CAC-40 down 45.62 points or 1.05 percent at 4,278.83
Major gainers:
Alcatel-Lucent up 0.16 or 4.18 percent at 3.99 as investors welcomed the resignation of chief executive Patricia Russo and chairman Serge Tchuruk, offsetting a negative impact from a wider than expected second quarter net loss.
Cap Gemini up 0.98 or 2.53 percent at 39.71
Total up 0.725 or 1.48 percent 49.715 as oil prices rose
Major losers:
Credit Agricole down 0.78 or 5.65 percent at 13.02, Societe Generale down 3.03 or 5.11 percent at 56.28, BNP Paribas down 2.34 or 3.69 percent at 61.07 and Dexia down 0.31 or 3.65 percent at 8.18 as renewed financial fears hit U.S. stocks
Most active stocks:
Alcatel-Lucent; 1.2 billion shares traded
Credit Agricole; 4.65 million shares traded
Invest in Slovakia
Alpine Standard Skiing - Apartments available from just £54,200. 80% LTV mortgages available - invest with just £11,000 cash. Click here.
Amsterdam
Amsterdam shares TFN market data at 10.26 a.m. - lower; Akzo plunges, DSM shines
MAJOR INDICES
AEX 390.05 points, down 2.93 points or 0.75 percent
AMX 529.11 points, down 0.53 points or 0.10 percent
Government bonds higher
MAJOR DECLINERS
AkzoNobel down 12.12 percent at 37.71 euros; no longer expects to meet its full-year EBITDA target and reports a 6 percent fell in second quarter net profit before fair value adjustments
Fortis down 3.34 percent at 8.97 euros; leads financials lower SNS Reaal down 3.52 percent at 9.87 euros as the midcap financial tracked blue chip peers lower Heijmans down 2.80 percent at 13.90 euros
MAJOR GAINERS
DSM up 9.77 percent at 39.20 euros; raised its full-year operating profit guidance to around 970 million euros with potential upside as it reported a strong second-quarter result
ArcelorMittal up 1.51 percent at 51.68 euros
Shell up 1.70 percent at 23.64 euros
Nutreco up 6.48 percent at 41.76 euros as the animal nutrition business is pulled higher by the strong second quarter result at DSM's vitamins business Fugro up 2.66 percent at 42.50 euros; wins $137 million joint contract in Brazil from Petrobras
Galvan Research & Trading
Galvan Research & Trading is an award-winning CFD advisor, voted the UK's Best Equity Derivatives Advisor three years running. We provide up-to-the-minute research and an old fashioned personalised service. Our traders have a wealth of experience and clients benefit from direct access to their own trader. Click Here to find out more.
Brussels
Brussels shares TFN market data at 10:09 a.m.; Colruyt outperforms
Main index
Bel 20 down 30.23 points or 1.01 percent at 2,969.54
Bel 20 fallers
Agfa-Gevaert falls 0.20 euros or 3.94 percent to 4.87 Fortis down 0.34 euros or 3.66 percent at 8.94 Dexia down 0.30 euros or 3.53 percent at 8.20 KBC off 2.09 euros or 3.23 percent at 62.60 Delhaize down 0.46 euros or 1.25 percent at 36.48
Cofinimmo inches down 0.30 euros or 0.25 percent to 117.50; group expected to post a slight drop in first half net profit Tuesday after market close due to a second quarter boosted by income from recent acquisitions which will offset a weaker first quarter result
Bel 20 gainers
Colruyt rises 5.43 euros or 3.21 percent to 174.50 after forecast-beating Q1 sales; KBC raises target to 200.00 euros vs 180.00; JP Morgan lifts target to 200.00 euros vs 192.00; Petercam ups target to 195.00 euros vs 192.00; Citigroup lifts target to 180.00 euros vs 170.00
GDF Suez inches up 0.15 euros or 0.37 percent to 40.55; Suez Energy has valid acceptances for 94.4 percent of Econergy Bekaert up 0.51 euros or 0.54 percent at 94.09; analysts expect good H1 results on Friday before the market opens
Outside the Bel 20
OncoMethylome Sciences drops 0.60 euros or 7.41 percent to 7.50 Van de Velde down 0.52 euros or 1.95 percent to 26.21; KBC downgrades EPS 09/10 forecasts by 9 percent on lower-than-expected H1 sales
AI
