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Earnings hopes lift Europe stocks to near 3-week high
Mon, 12th Oct 2009 12:45
By Blaise Robinson
PARIS, Oct 12 (Reuters) - European stocks were up 1.2
percent by midday on Monday, hitting a near three-week high, as
forecast-beating results from Philips fuelled hopes
over results ahead of this week's earnings from bellwethers.
At 1110 GMT, the FTSEurofirst 300 index of top
European shares was up 1.2 percent at 1,010.24 points, after
rising to as high as 1,010.55 points, the index's highest level
since Sept. 23.
Shares of Philips surged 6.1 percent after posting
better-than-expected third-quarter results, as the world's
biggest lighting maker and Europe's biggest consumer electronics
producer benefited from cost-cutting measures.
Shares of tech companies and conglomerates gained ground,
with both Siemens and Nokia up 2.7
percent, while Alcatel-Lucent soared 5.2 percent, also
helped by a rating upgrade from Societe Generale, which upgraded
its recommendation on the stock to 'hold' from 'sell'.
'We're testing the resistance on the upside at the moment,
but to resume the upside trend, we need good quarterly results,'
said David Thebault, head of quantitative sales trading, at
Global Equities, in Paris.
'The figures from Philips bode well for the earnings season,
because the company's businesses range from healthcare to
technology, touching a lot of sectors. It's a good indication of
what to expect. Overall, I think this earnings season will be
strong.'
Investors eagerly awaited quarterly results from U.S.
bellwethers Intel Corp, Johnson & Johnson,
Citigroup, Bank of America, Goldman Sachs,
JPMorgan, Google, IBM and General
Electric, expected to report this week.
Banks and insurance stocks rose on Monday, with HSBC up 0.8 percent, UBS up 1.3 percent and
Allianz up 2 percent.
BUOYANT OIL BOOSTS ENERGY STOCKS
The banking sector, which had a dismal 2008, has
jumped 171 percent since the market reached a floor in early
March, outpacing the FTSEurofirst 300, which is up 56 percent
over the same period.
Barclays bucked the trend on Monday, down 1.2
percent. The Financial Times reported the UK lender is planning
to spin off a 4-billion-pound ($6.35 billion) portfolio of
complex credit assets in a bid to further clean up its balance
sheet.
Shares of oil companies gained ground as crude oil futures hit the $73 mark, up nearly 2 percent, on optimism over
the pace of global economic recovery and indications of stronger
oil demand.
Total added 1.5 percent, Repsol rose 1
percent and BP gained 1.4 percent.
Around Europe, UK's FTSE 100 index was up 1.1
percent, Germany's DAX index up 1.5 percent, and
France's CAC 40 up 1.3 percent.
So far this year, the FTSEurofirst 300 is up 21 percent, the
FTSE 100 up 18 percent, the DAX up 21 percent and the CAC up 20
percent.
(Reporting by Blaise Robinson; Editing by Hans Peters)
Keywords: MARKETS EUROPE STOCKS ============================================================= For rolling updates on what is moving European shares please click on ============================================================= For pan-Europeanmarket data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices...................................... Reuters survey of world bourse outlook.......... Western European IPO diary........................... European Asset Allocation......................... Reuters News at a Glance: Equities............... Main currency report:............................... Keywords: MARKETS EUROPE STOCKS/ =2
(blaise.robinson@reuters.com ; +33 1 4949 5269, Reuters Messaging: blaise.robinson.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
PARIS, Oct 12 (Reuters) - European stocks were up 1.2
percent by midday on Monday, hitting a near three-week high, as
forecast-beating results from Philips fuelled hopes
over results ahead of this week's earnings from bellwethers.
At 1110 GMT, the FTSEurofirst 300 index of top
European shares was up 1.2 percent at 1,010.24 points, after
rising to as high as 1,010.55 points, the index's highest level
since Sept. 23.
Shares of Philips surged 6.1 percent after posting
better-than-expected third-quarter results, as the world's
biggest lighting maker and Europe's biggest consumer electronics
producer benefited from cost-cutting measures.
Shares of tech companies and conglomerates gained ground,
with both Siemens and Nokia up 2.7
percent, while Alcatel-Lucent soared 5.2 percent, also
helped by a rating upgrade from Societe Generale, which upgraded
its recommendation on the stock to 'hold' from 'sell'.
'We're testing the resistance on the upside at the moment,
but to resume the upside trend, we need good quarterly results,'
said David Thebault, head of quantitative sales trading, at
Global Equities, in Paris.
'The figures from Philips bode well for the earnings season,
because the company's businesses range from healthcare to
technology, touching a lot of sectors. It's a good indication of
what to expect. Overall, I think this earnings season will be
strong.'
Investors eagerly awaited quarterly results from U.S.
bellwethers Intel Corp, Johnson & Johnson,
Citigroup, Bank of America, Goldman Sachs,
JPMorgan, Google, IBM and General
Electric, expected to report this week.
Banks and insurance stocks rose on Monday, with HSBC up 0.8 percent, UBS up 1.3 percent and
Allianz up 2 percent.
BUOYANT OIL BOOSTS ENERGY STOCKS
The banking sector, which had a dismal 2008, has
jumped 171 percent since the market reached a floor in early
March, outpacing the FTSEurofirst 300, which is up 56 percent
over the same period.
Barclays bucked the trend on Monday, down 1.2
percent. The Financial Times reported the UK lender is planning
to spin off a 4-billion-pound ($6.35 billion) portfolio of
complex credit assets in a bid to further clean up its balance
sheet.
Shares of oil companies gained ground as crude oil futures hit the $73 mark, up nearly 2 percent, on optimism over
the pace of global economic recovery and indications of stronger
oil demand.
Total added 1.5 percent, Repsol rose 1
percent and BP gained 1.4 percent.
Around Europe, UK's FTSE 100 index was up 1.1
percent, Germany's DAX index up 1.5 percent, and
France's CAC 40 up 1.3 percent.
So far this year, the FTSEurofirst 300 is up 21 percent, the
FTSE 100 up 18 percent, the DAX up 21 percent and the CAC up 20
percent.
(Reporting by Blaise Robinson; Editing by Hans Peters)
Keywords: MARKETS EUROPE STOCKS ============================================================= For rolling updates on what is moving European shares please click on ============================================================= For pan-Europeanmarket data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices...................................... Reuters survey of world bourse outlook.......... Western European IPO diary........................... European Asset Allocation......................... Reuters News at a Glance: Equities............... Main currency report:............................... Keywords: MARKETS EUROPE STOCKS/ =2
(blaise.robinson@reuters.com ; +33 1 4949 5269, Reuters Messaging: blaise.robinson.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
