News Column

European Markets Indicated To Open Mixed

July 1, 2014

PARIS (Alliance News) - The European markets are poised for a mixed open on Wednesday, after the rally in the previous session. The Asian markets advanced on firm cues from Wall Street overnight.

The DAX futures are gaining 8.50 points. The CAC 40 futures are losing 8.50 points while the FTSE 100 futures and the Swiss Market Index futures are down 6.00 points each.

The European stocks rallied Tuesday as better-than-expected Chinese factory data bolstered hopes that the global recovery is back on track.

The German DAX, the French CAC 40, the FTSE 100 index and the Swiss Market index gained between 0.6% and 0.9%.

The Euro Stoxx 50 index of eurozone bluechip stocks, and the Stoxx Europe 50 index, which includes some major UK companies, gained about 0.9% each.

On the economic front, UK house price growth accelerated further to 11.8% in June from 11.1% in May, Nationwide said Wednesday. Compared to May, house prices gained 1% in June.

Producer prices from the Eurozone are expected later in the day, which may have some influence on trading.

On the corporate front, Genentech, a member of Switzerland-based Roche Group, has entered into a definitive agreement to acquire Seragon Pharmaceuticals, Inc., a privately-held biotechnology company, in a deal with a total transaction value of up to USD1.725 billion.

Tullow Oil reported that its 2014 half-yearly financial results are expected to deliver strong revenue and gross profit in line with expectations of approximately USD1.3 billion and USD650 million, respectively.

British homebuilder Persimmon reported strong trading for the first half of this year, with total revenues up 33% to 1.2 billion pounds. During the period, the Group legally completed 6,408 new homes, a 28% increase year-over-year.

Dutch lender ING Group has priced the initial public offering of 77 million ordinary shares of its insurance arm NN Group N.V. at 20 euros per share, resulting in gross proceeds of about 1.5 billion euros. The offer price is at the mid-point of the company's initial range.

The US futures indicate a higher open on Wall Street. In the previous session, stocks moved sharply higher over the course of the trading day. The Dow advanced 0.8%, the Nasdaq jumped 1.1% and the S&P 500 climbed 0.7%.

Among commodities, crude for August delivery is gaining USD0.10 to USD105.44 per barrel while gold is losing USD0.7 to USD1325.9 a troy ounce.

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Source: Alliance News

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