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Europe: American corporations continue to set the tone for trading

Oct 17th, 2009 | By admin | Category: Reviews and ideas

 

Friday, 16 October, stock markets in the European region have shown negative dynamics. The main causes of disorders of investors formed the quarterly reporting General Electric and Bank of America.

Not pleased with the market participants and macroeconomic statistics. Thus, the euro zone trade deficit in August amounted to 4 billion euros, while a month earlier the difference of exports and imports was positive and consisted of 12.6 billion euros. Analysts expect a decline in trade surplus to 9.7 billion euros. Data from the U.S. were mixed. Thus, industrial production in September increased by 0,7%, while the predicted growth of 0.2%, and a preliminary value of the index of the University of Michigan consumer confidence for October dropped from 70.2 points to 69.4 points when projected to increase to 73, 5 points.

As a result of trades regional index Dow Jones Stoxx 600 has lowered 0,53%. The British FTSE 100 weakened to 0,63%, French CAC 40 dropped to 1.45%, while the Swiss SMI lost 0.59% of the cost. Losers was the German DAX, decreased by 1,5%.

Shares of aircraft engine manufacturer Safran lost 5,85% of the cost. According to executive director, in 2010, the company will make all efforts to achieve positive financial results. At the moment the main objective Safran is the completion of fiscal year 2009 from the previously planned operating profit of 6%.

Against the backdrop of the increased cost of petroleum at the auctions in New York increased the market capitalization of the region's largest oil companies. Thus, quotes Total climbed to 0.68%, paper BP moved to 0,63%, while shares of Europe's largest refiners Petroplus jumped 4.57%.

Papers of National Express Group have fallen to 23.14% after CVC Capital Partners refused to buy British bus and rail operator. According to the company, selling shares at the moment is the most appropriate solution to financial problems.

Ericsson Market capitalization increased by 1.97%. Sony Ericsson Mobile Communications, a joint venture between Sony and Ericsson, reported a net loss for the third quarter amounting to 164 million euros ($ 245 million), which, however, proved to be better than the average forecast of analysts.

Equity Lloyds Banking Group recovered by 1,85% after the specialists Deutsche Bank upgraded the rating of securities of the creditor with a hold to buy while increasing their target price from 100 pence to 115 pence.

Quotations Swiss Life Holding climbed 4.47%. Citigroup analysts have revised recommendations for the securities of companies with a hold to buy, increasing their target price by 33% to 160 francs.

Values of the basic indexes on closing are resulted in the table:

Index Country Closing (items) Delta day (items) Change day (%) value at beginning of year (the last closing in 2008) ChangeYTD
ATX Austria 2,725.23 -12.77 -0.47% 1750.83 55.65%
BEL20 Index Belgium 2,578.14 -6.25 -0.24% 1908.64 35.08%
FTSE 100 United Kingdom 5,190.24 -32.71 -0.63 % 4434.17 17.05%
DAX Index Germany 5,743.39 -87.38 -1.50% 4810.2 19.40%
IBEX 35 INDEX Spain 11,676.40 -173.3 -1.46% 9195.8 26.98%
FTSE MIB Italy 24,152.34 -187.42 -0.77% 19460 24.11%
AEX Netherlands 322.31 -2.88 -0.89% 245.94 31.05 %
OMX Nordic 40 Scandinavia 810.79 -0.82 -0.10% 625.8 29.56%
CAC 40 France 3,827.60 -56.23 -1.45% 3217.97 18.94%
SMI Switzerland 6,345.26 -37.93 -0.59% 5534.53 14.65%


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