Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

MARKET COMMENT: Europe Stocks Take Cue from Higher Wall Street

11/23/2012 | 12:54pm US/Eastern

By Sara Sjolin

LONDON (MarketWatch)--European stock markets climbed Friday, with the Stoxx 600 index posting its best weekly performance in almost a year, as U.S. stocks also advanced and upbeat German data calmed nerves that the region's powerhouse is losing momentum.

The Stoxx Europe 600 index rose 0.6% to close at 273.33, extending gains into a fifth straight day. The index jumped 4% on the week, in sharp contrast to last week's 2.7% loss.

"We have been catching up from last week," said Predrag Dukic, senior equity sales trader at CM Capital Markets in Madrid.

"But at the moment we're not seeing too many moves. A lot of traders are under a lot of pressure because volumes are low and margins have been significantly reduced. Traders aren't really prepared to take on more risk and are waiting for this year to end," he said.

Shares of Outotec Oyj jumped 6.3% after the Finnish metals-processing firm lifted its services-sales target to an annual level of 1 billion euros ($1.29 billion) by the end of 2017 from a previous target of EUR500 million by the end of 2015.

Shares of some supermarket chains moved lower. Shares of France's Carrefour SA lost 0.3% after Nomura cut its rating on the entire European supermarket sector to neutral from bullish.

Underpinning sentiment for investors, the Munich-based Ifo Institute said its business-climate index rose to 101.4 in November from 100 in October, topping analysts' expectations. The surprise improvement also caused the euro to rally, which climbed above $1.29.

"The German economy has once again surprised us positively. There were reports that suggested otherwise, but it seems to me that the Germans are doing rather well and will surprise next year with more figures that are better than expected. This is good news for Europe," said Dukic from CM Capital Markets.

The German DAX 30 index jumped 0.9% to 7,309.13 and closed the week 5.2% higher. Bayer AG rose 1.6% to EUR69.74, after Nomura raised its target price on the health-care firm to EUR78 from EUR72.

Data from France also showed business sentiment improved but remained close to its lowest level in three years. The index for business environment among industrialists rose to 88 in November from 85 in October.

France's CAC 40 index gained 0.9% to 3,528.80, with a 1.4% gain for Sanofi SA and a 0.8% rise for Total SA. The French index rose 5.6% on the week.

Oil stocks recovered in the afternoon, as oil prices moved higher.

After the weekend, attention will return to Greece, when euro-zone finance ministers meet for the third time to try to agree on a road map to debt sustainability for Greece, a move necessary to release the country's next tranche of bailout money.

"At the moment, there is a logjam because the IMF [rightly] is insisting that debt sustainability can only be achieved through official-sector-debt forgiveness [OSI], a prospect that the northern members of the euro area are unwilling to accept at this point," analysts at RBC Capital Markets said in a note.

"But the European creditors have already demonstrated the willingness to move, and we expect a deal that will include a mix of options: lower interest rates on current loans, an interest moratorium, a longer repayment schedule or an agreement on OSI at some point in the future, conditional on Greek performance," they said.

Meanwhile, European Union leaders failed Friday to reach an agreement on the EU's budget for 2014-2020 after a two-day meeting in Brussels.

Among other notable movers in Europe, SABMiller PLC shares rose 1.2% to 28.34 pounds ($45.20), adding to a 6.4% gain on Thursday when the brewer reported a rise in net profit. Friday, Nomura lifted the stock to neutral from reduce, while Societe Generale raised its target price to GBP29.7 from GBP28.

The U.K.'s FTSE 100 index rose 0.5% to 5,819.14, boosted as heavyweights followed their respective sectors higher, with GlaxoSmithKline PLC up 0.8% and energy group BP PLC up 0.4%. The London benchmark index closed out the week 3.8% higher.

Write to Sara Sjolin at AskNewswires@dowjones.com

React to this article
Latest news
Date Title
09:20a NORTH AMERICAN NICKEL : Provides Maniitsoq Project Exploration Update and Highlights
09:20a BTG Pactual's Esteves did not obstruct Brazil probe, lawyer says
09:20a IGNYTA INC : Technical Insight on Equity Movement - Research on Ignyta, KongZhong, Arbutus Biopharma and Curis
09:19a ARKEMA : recognized for its Corporate Social Responsibility performance
09:19a EUROPEAN PARLIAMENT : EU needs to boost its steel industry, say MEPs
09:19a ENEL GREEN POWER : Information document on related- party transactions has been published
09:19a BANCO SANTANDER : announces that the June 2015 fully loaded CET1 ratio of Banco Santander published yesterday on the EBA´s Website (7.94%) was incorrect, as the Authority itself has warned being 9.83% the correct ratio
09:19a SYNTH MR : SyntheticMR at RSNA
09:19a GALLIFORD TRY : The Queen unveils opening plaque for Birmingham Dental Hospital 25 Nov 2015
09:19a CATALENT : to Discuss Challenges & Logistics of Clinical Trials in Asia
Latest news
Hot News 
UBS : Consumption Indicator:sentiment brightens up
HARBOURVEST HVGPE : Press Release 31 October 2015 Interim Management Statement
METALS EXPLORATION : Open Offer Results and Issue of Equity
SEAENERGY : Change of Adviser
IMIMOBILE : and Airtel announce launch of mobile billing merchant service in Africa
Most Read News
11/24 GOVERNMENT OF BRITISH COLUMBIA : Team BC medallists in the spotlight at 2015 Skills Canada BC gala
11/24DJSingapore 3Q GDP Growth Revised Up Sharply
11/24 Hastings’ Managed Utilities Trust of Australia Named as a Successful Bidder for TransGrid
11/24 MINERALS COUNCIL OF AUSTRALIA : Timely completion of australia india nuclear cooperation agreement
11/24 GRAIN GROWERS : Business week supports Australia - Indonesia wheat trade
Most recommended articles
09:15a The ECB Fires a Warning Signal, but Will They Deliver in December?
09:15aDJPETROCHINA : to Sell Gas Pipeline Unit Stake to China Reform Holdings
09:13a Osborne surprises with budget plan, scraps tax credit cuts
09:10a Indexes set to open higher as data points to recovery
09:10a USD/JPY TECHNICAL ANALYSIS : 21-DMA Support Key for Bulls