|
||||||||
  |
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Europe soars ahead on U.S. data
LONDON, England (CNN) -- European markets soared on Thursday, led by technology and insurance stocks, bolstered by better-than-expected U.S. economic data and a strong start on Wall Street. London's FTSE 100 rose 4.2 percent to 3,850.6 and the CAC 40 blue chip index in Paris jumped 6.3 percent to 2,961.46, while Frankfurt's electronically traded Xetra Dax was up 3 percent to 3,050.08 in late trading (the German market was set to close at 1800 GMT). The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 4.7 percent. The AEX index in Amsterdam rose 6.6 percent, Milan's MIB30 index gained 3.1 percent and the SMI in Zurich added 5.5 percent. European markets added to gains from the previous session with the help of some favourable U.S. economic data, including signs that the labour market was improving. The number of people filing new claims for unemployment benefits dropped unexpectedly to 406,000 last week from a revised 430,000 the previous week, a five-week low. (Full story) "Given recent rises, the latest jobless claims data would suggest that while the labour market is not getting better it's not getting worse," Matthew Wickens, global economist at ABN Amro, told Reuters. "So it looks more like a jobless recovery than a double-dip." Some market watchers are skeptical that the rally can be sustained amid ongoing tensions in the Middle East, poor corporate earnings and economic conditions. "There are technical ebbs and flows in the market and this is a technical bounce." Robert Parker at Credit Suisse Asset Management told CNN. "You have to ask is this sustainable? I'd have to say no," he said. "Middle East tensions, corporate profitability and weak economic conditions -- until these problems show signs of diminishing we can not expect to see any kind of sustainable rally." But others see a more sustained rebound if Mideast tensions subside, and there is only limited negative corporate and economic news. "For the last two days and the next few days, what's driving the market is the lack of bad news," Thierry Lacraz, European strategist at Pictet & Cie bank, told Reuters. "This rebound could last two or three weeks."
European markets were able set aside concerns about Canada's Nortel Networks (NT), which warned on Wednesday it would miss third-quarter revenue targets, with the technology sector leading stocks higher. Instead, tech and telecom stocks had a brisk session. Finland's Nokia (NOK) jumped 10 percent to 14.47 euros after the world's biggest mobile phone maker said it expects industry wide mobile phone shipments to grow 10 percent to 15 percent in 2003 and each year after that. (Full story) Dutch semiconductor equipment maker ASML gained 8 percent to 6.74 euros. Investors continued to reward the group after stating on Wednesday that it expects to ship about 100 lithography units in the second half of 2002 and said it would ship around 60 units in first-half 2003. (Full story) The insurance sector was led higher by Swiss Re, which rose 7.7 percent 84.15 Swiss francs, after U.S. ruling that insurers need only pay once for a claim related to the September 11 attack on the World Trade Center. The buildings' owner has wanted two payments because two planes were involved in the terrorist attack. That news also helped lift the UK's Royal & Sun Alliance (RSA), which added 8.6 percent to 102.60 pence, and Prudential (PRU), which gained 7.3 percent to 360.50 pence. Germany's Munich Re (FMUV2) was up 8.4 percent to 122.50 euros in late Frankfurt trading. However, Germany's Allianz (FALZ), Europe's largest insurer, was down 4.3 percent to 98.45 euros in late trading after it gave executives at its loss-making Dresdner Bank until next year to return the bank to profit and confirmed that up to 3,000 jobs would be shed as part of its turnaround plan. (Full story) Elsewhere, Allied Irish Banks (ALBK) rose 8.9 percent to 12.50 euros after it sold scandal-hit Allfirst Financial to M&T Bank Corp. (MTB) in a deal worth $3.1 billion in cash and stock. (Full story) Vivendi Universal (PEX), the world's second-largest media group, rose 7.7 percent to 13.15 euros -- reversing earlier losses -- as investors continue to digest news about plans to sell assets worth 12 billion euros as it jettisoned a third of its board on. (Full story) Gucci Group, the world's third-largest fashion group, rose 3.7 percent to 89 euros -- also reversing earlier losses -- after posting a 55 percent drop in profit and warned it may not meet its full-year targets as consumers curtail their spending. (Full story) European carmakers were in the spotlight, as executives plugged their latest models and latest financial numbers at the Paris motor show. (Full story) Luxury German carmaker BMW (FBMW) was up 7.5 percent to 34.53 euros in late trading. On Thursday, it said it expected its unit sales for the first nine months of the year to rise to 800,000 vehicles and the company had raised its target for Mini sales this year. DaimlerChrysler (FDCX) was up 4.6 percent to 37.64 euros in late Frankfurt trading after it pledged to continue cutting costs after meeting next year's goals in a bid to achieve long term profit growth for the unit. France's Peugeot Citroen (PUG) gained 8.7 percent to 39.57 euros. On Thursday its chairman shrugged off concern over a morose European car market, outlining a lofty new sales target underpinned by growth in markets far from the French automaker's home turf. In the U.S. on Wednesday, markets were higher in early trading after stronger-than-expected reports on employment, new home sales and durable goods orders boost investor sentiment. The number of people filing new claims for unemployment benefits dropped unexpectedly to 406,000 last week from a revised 430,000 the previous week, a five-week low, the government said. (Full story) August new home sales gained 1.9 percent to a 996,000-unit annual rate from a revised 977,000 rate in July. Economists were expecting a decline to an annual rate of 980,000. (Full story) And durable goods orders fell 0.6 percent in August, compared to predictions of a 3.4 percent drop. In July, orders rose a revised 8.6 percent. (Full story) At 1415 GMT, the Nasdaq composite was up 12.90 points to 1,234.19. The Dow Jones industrial average gained 100.23 points to 7,942.05 and the Standard & Poor's 500 index rose 11 points to 850.
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
