News Column

European Markets Rise, Credit Agricole Climbs

August 5, 2014

PARIS (Alliance News) - The European markets are trading higher on Tuesday, as investors digested some corporate earnings news, despite some weak cues from Asia.

In economic news, Eurozone retail sales grew at a faster pace in June as both food and non-food product sales increased from May, Eurostat reported.

Retail sales grew 0.4% month-on-month in June, following May's 0.3% rise. But it was slightly slower than the 0.5% rise forecast by economists.

Eurozone private sector expansion accelerated at the start of the third quarter on strong growth in Germany and Spain, final data from Markit Economics showed. Nonetheless, the overall pace of expansion was slower than initially estimated.

Meanwhile, the services sector in China slid to no change in July, the latest survey from Markit Economics revealed.

The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.49%, while the Stoxx Europe 50 index, which includes some major UK companies, is gaining 0.73%.

The German DAX, the French CAC 40, the UK'sFTSE 100 are gaining between 0.4% and 0.6%, while Switzerland's SMI is up around 1%.

In Frankfurt, Deutsche Post is gaining 2.6%. The Mail and logistics group said its second-quarter profit was benefited by improved results in Express and Supply Chain segments. The company also maintained its positive earnings forecast for 2014.

BMW is up 2.4%. The luxury car giant reported over 27% increase in second-quarter net profit, as revenues grew with rise in sales volumes in all major sales regions. The Group also reaffirmed sales volume and earnings outlook for 2014.

HeidelbergCement is moderately higher after a broker upgrade.

Meanwhile, shares of Bilfinger is declining 6.3%, after the engineering group cut its profit forecast yet again, and said its chief executive officer stepped down.

In Paris, Credit Agricole is surging 5% after second-quarter underlying earnings increased.

Vivendi is gaining 3.4% after Spanish telecom operator Telefonica SA announced an offer for Vivendi's unit in Brazil, Global Village Telecom. Telefonica is down 1.5% in Madrid.

Loreal and Pernod Ricard are gaining 1.9% and 1.7%, respectively.

In London, Intertek Group is gaining 3.8%. JPMorgan raised the stock to ''Overweight'' from ''Neutral.''

Aggreko is gaining 2.6%. The temporary power provider reported good underlying growth in the first half of the year.

InterContinental Hotels, which reported financial results, is losing 3.7%.

Meggitt is declining 7.2%. The Aerospace equipment maker reported lower first-half profit as revenues plunged on currency headwinds, significantly lower military revenues and certain disposals.

The Asian stocks fell broadly as investors weighed company earnings and weak Chinese data.

In the US, futures point to a cautious open on Wall Street. In the previous session, the Dow rose half a percent, while the tech-heavy Nasdaq and the S&P 500 gained about 0.7% each.

Crude for September delivery is gaining USD0.17 to USD98.46 per barrel, while gold is rising USD3.6 to USD1292.5 a troy ounce.

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Source: Alliance News

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