Member access

4-Traders Homepage  >  News

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
Recommend:
0

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

Recommend :
0
React to this article
Latest news
Date Title
17m ago WEEKLY TRADING FORECAST : Will Volatility and Dollar Rallies Continue?
18m ago TRACTOR SUPPLY : Glen Burnie neighborhood locked in by feud ; Gate between East Park Village and shopping center latest salvo in long dispute
27m ago US Dollar Rally at the Mercy of Volatility, Interest Rate Trends
1d ago IKB DEUTSCHE INDUSTRIEBANK : ABS Loan For SMEs: EIB Participates In Securitisation Deal With IKB Leasing
1d ago ALABAMA PWR4 2PREF : Statement from Congresswoman Sewell on Conversion of Alabama Power Facility in Greene County
1d ago DELTA AIR LINES : Receives Safety, Health Award from MNOSHA, Recognized Aug. 5
1d ago ENVENTIS : Iowa Utilities Board Issues Summary of Filings and Orders Aug. 1, 2014
1d ago POLARIS : Partners with Minnesota Job Creation Fund for Twin Cities Expansion
1d ago Will Google and Amazon offer one-click life insurance?
1d ago AFLAC : Are you as relevant as a VHS?
Latest news
Advertisement
Hot News 
ATHLON ENERGY : Prices Secondary Public Offering of Common Stock
ECO CITY VEHICLES : Blames Uber, Boris For Challenging Trading
AUTOBYTEL : Photo Release -- Forget Sharknado 2... Autobytel Creates Carnado Too Instead
HUTCHINSON TECHNOLOGY : Third Quarter Results in Line With Expectations
ARKEMA : 2Q Disappoints
Most Read News
1d ago CFTC U S COMMODITY FUTURES TRADING COMMISSION : Charges Florida-Based Southern Trust Metals, Inc. and Robert Escobio, and His BVI-Based Entity Loreley Overseas Corp., with Operating an Illegal Precious Metals Scheme, among other Violations
1d ago KELSO TECHNOLOGIES : PHMSA/AAR/FRA – New Requirements For Rail Tank Cars
1d ago TUCKAMORE CAPITAL MANAGEMENT : Announces Closing of Private Placement With Orange Capital
1d ago Berkshire profit soars 41 percent to a record on investment gains
1d ago Microsoft sues Samsung in U.S. over patent royalties
Most recommended articles
2d agoDJMARKET SNAPSHOT : U.S. Stocks: Futures Drop On Jobless Claims
16m ago WEEKLY TRADING FORECAST : Will Volatility and Dollar Rallies Continue?
26m ago US Dollar Rally at the Mercy of Volatility, Interest Rate Trends
1d ago Australian Dollar May Bounce Before Selling Pressure Builds in Earnest
1d ago JPMorgan reaches proposed $4.5 bln mortgage securities deal for most trusts
Dynamic quotes  
ON
| OFF