Tuesday June 30, 2009
LONDON: European stock exchanges recorded strong gains on Monday, with investors in a buying mood as the first half of the year winds down ahead of key US data later in the week.
In London the FTSE 100 index climbed 1.25 percent to close at 4,294.03 points, gaining strength following a positive start to the trading day on Wall Street.
In Paris the CAC 40 rose 2.04 percent to finish at 3,193.68 while in Frankfurt the Dax added 2.27 percent to reach 4,885.09.
Elsewhere there were gains of 1.5 percent in Amsterdam, 1.21 percent in Brussels, 1.64 percent in Madrid, 0.17 percent in Milan and 1.25 percent on the Swiss Market Index.
In New York the Dow Jones Industrial Average was up 0.89 percent at mid-day at 8,513.28. The tech-heavy Nasdaq had risen 0.45 percent to 1,846.50.
The economic calendar was empty Monday but investors faced a slew of data in the holiday-shortened week, with the market closed Friday for the July 4 Independence Day holiday.
Among the key reports are the June consumer confidence reading on Tuesday, June automobile sales on Wednesday and the June unemployment report, a bellwether on economic momentum, on Thursday.
"The market is in a discerning state of wait-and-see, as it looks for justification in the upcoming second quarter earnings reports and incoming economic data to keep the recovery rally going," said Patrick O'Hare of Briefing.com.
"We think it could be disappointed given the lack of economic evidence suggesting there has been a strong pickup in end demand that would allow for the majority of companies to deliver top-line driven earnings surprises."
In London sentiment was largely driven by the banking and insurance sector, with investors attracted by positive comment from analysts.
Lloyds Banking Group jumped 6.12 percent to 70.56 pence after Goldman Sachs added it to its list of preferred stocks.
Barclays rose 4.31 percent to 279.65 while Schroders gained 3.67 percent to finish at 846.50 pence.
In Paris, according analyst Alice Lhabouz of Turgot Asset Management, "there has been some technical buying before the end of the first semester."
She said portfolio managers appeared ready to invest in cyclical -- and riskier -- stocks before drafting their semester reports.
Oil issues were well supported, taking advantage of rising crude prices. Total added 2.53 percent close at 38.97 euros while Vallourec rose 3.32 percent to 87 euros.
In Frankfurt companies that are especially dependent on macroeconomic developments were in demand.
The industrial conglomerate Siemens added 3.19 percent to close at 50.41 euros while chemical group BASF gained 3.93 percent to finish at 29.12 euros.
Volkswagen crept up 0.71 percent to 251.18 euros. But the auto maker suffered from tensions with Porsche, its principal shareholder.
Porsche, the heavily indebted maker of German luxury sports cars, rejected a merger offer by Volkswagen.
Deutsche Telekom rose 2.49 percent to close at 8.43 euros on press reports that its British rival Vodafone was preparing an offer for Deutsche Telekom's British subsidiary T-Mobile UK.
In Asia on Monday, Tokyo ended down 0.95 percent and Hong Kong slipped 0.39 percent, ending a three-day winning streak, as investors took profits ahead of a series of economic reports due this week.
(AFP)
LONDON: European stock exchanges recorded strong gains on Monday, with investors in a buying mood as the first half of the year winds down ahead of key US data later in the week.
In London the FTSE 100 index climbed 1.25 percent to close at 4,294.03 points, gaining strength following a positive start to the trading day on Wall Street.
In Paris the CAC 40 rose 2.04 percent to finish at 3,193.68 while in Frankfurt the Dax added 2.27 percent to reach 4,885.09.
Elsewhere there were gains of 1.5 percent in Amsterdam, 1.21 percent in Brussels, 1.64 percent in Madrid, 0.17 percent in Milan and 1.25 percent on the Swiss Market Index.
In New York the Dow Jones Industrial Average was up 0.89 percent at mid-day at 8,513.28. The tech-heavy Nasdaq had risen 0.45 percent to 1,846.50.
The economic calendar was empty Monday but investors faced a slew of data in the holiday-shortened week, with the market closed Friday for the July 4 Independence Day holiday.
Among the key reports are the June consumer confidence reading on Tuesday, June automobile sales on Wednesday and the June unemployment report, a bellwether on economic momentum, on Thursday.
"The market is in a discerning state of wait-and-see, as it looks for justification in the upcoming second quarter earnings reports and incoming economic data to keep the recovery rally going," said Patrick O'Hare of Briefing.com.
"We think it could be disappointed given the lack of economic evidence suggesting there has been a strong pickup in end demand that would allow for the majority of companies to deliver top-line driven earnings surprises."
In London sentiment was largely driven by the banking and insurance sector, with investors attracted by positive comment from analysts.
Lloyds Banking Group jumped 6.12 percent to 70.56 pence after Goldman Sachs added it to its list of preferred stocks.
Barclays rose 4.31 percent to 279.65 while Schroders gained 3.67 percent to finish at 846.50 pence.
In Paris, according analyst Alice Lhabouz of Turgot Asset Management, "there has been some technical buying before the end of the first semester."
She said portfolio managers appeared ready to invest in cyclical -- and riskier -- stocks before drafting their semester reports.
Oil issues were well supported, taking advantage of rising crude prices. Total added 2.53 percent close at 38.97 euros while Vallourec rose 3.32 percent to 87 euros.
In Frankfurt companies that are especially dependent on macroeconomic developments were in demand.
The industrial conglomerate Siemens added 3.19 percent to close at 50.41 euros while chemical group BASF gained 3.93 percent to finish at 29.12 euros.
Volkswagen crept up 0.71 percent to 251.18 euros. But the auto maker suffered from tensions with Porsche, its principal shareholder.
Porsche, the heavily indebted maker of German luxury sports cars, rejected a merger offer by Volkswagen.
Deutsche Telekom rose 2.49 percent to close at 8.43 euros on press reports that its British rival Vodafone was preparing an offer for Deutsche Telekom's British subsidiary T-Mobile UK.
In Asia on Monday, Tokyo ended down 0.95 percent and Hong Kong slipped 0.39 percent, ending a three-day winning streak, as investors took profits ahead of a series of economic reports due this week.
(AFP)
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