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Europe: markets caught a wave of American optimism

Mar 3rd, 2010 | By admin | Category: Reviews and ideas

 

Friday, January 29, the major stock markets of the European region have shown an upward momentum. Overseas neighbors pleased macroeconomic data, did not fail and statistics within the region. German automaker BMW and the company Infineon also presented with a pleasant surprise, reporting increased its forecasts for sales.

Most analysts expected that the preliminary U.S. GDP will increase by 4 quarter of 4,6% /K, but the value of the index was at 1.1% above projections. The January value of Chicago"s business activity index and the final index of U.S. consumer confidence University of Michigan were also better than the average expectations of analysts.

Within days came the data on the level of unemployment in the euro area, which is preserved in December at the same level of 10%, while the projected increase to 10,1%. KOF index of leading indicators in Switzerland in January amounted to 1.77 points versus 1.7 points expected by analysts, however, the Swiss SMI index only failed to support the overall positive dynamics, lowered from its asset 0,03%.

As a result of trading a key index of the UK FTSE 100 has become harder to 0,83%, French CAC 40 index gained strength at 1.37%, while the German DAX closed in positive territory at 1.24%. Regional index Dow Stoxx 600 advanced at 0.96% and closed at a level of 246.96 points.

The world"s largest luxury carmaker BMW expects to increase profits this year thanks to the launch of new models and the revival of sales in the U.S., China and Germany. As a result, the company"s stock rose to 4,69%.

Quotes of the second-largest producer in the world of elite cars Daimler and the French company Peugeot Citroen have moved, in turn, to 3,71% and 1,29% respectively.

The second largest European manufacturer of semiconductors Infineon Technologies earned on trades 3% of market capitalization after it said earnings for the year ending Sept. 30 could grow by 20%-plus. Support for shares of Infineon had a positive reporting - Net income in the first quarter totaled 66 million euros ($ 91.9 million) compared with a net loss of 404 million euros a year earlier.

Shares of the German manufacturer of household chemistry Henkel risen during the session at 1.78% against the expected increase in operating profit this year. Thus, the company expects earnings before interest and taxes will be higher than last year at 1.36 billion euros.

The increased cost of "black gold" of paper and some metals mining companies joined the favorites bidding. The fourth-largest global copper producer Xstrata has added to its asset 3,19%, and the world"s leading gornodobytchik BHP Billiton moved to 1,28%. Stocks Anglo American and Rio Tinto Group gained strength at 0,96% and 1,49% respectively.

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 2009) Change YTD
ATX Austria 2,493.53 20.27 0.82% 2495.56 -0.08%
BEL20 Index Belgium 2,505.20 18.69 0.75% 2511.62 -0.26%
FTSE 100 United Kingdom 5,188.52 42.78 0.83% 5412.88 -4.14%
DAX Index Germany 5,608.79 68.46 1.24% 5957.43 -5.85%
IBEX 35 INDEX Spain 10,947.70 118.4 1.09% 11940 -8.31%
FTSE MIB Italy 21,896.29 293.16 1.36% 23248.39 -5.82 %
AEX Netherlands 327.9 3.95 1.22% 335.33 -2.22%
OMX Nordic 40 Scandinavia 855.86 15.42 829.44 3.19%
CAC 40 France 3,739.46 50.67 1.37% 3936.33 -5.00%
SMI Switzerland 6,440.72 -1.69 -0.03% 6545.91 -1.61%


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