LONDON (Thomson Financial) - Europe's leading exchanges were up in midday trading, but off intra-day highs, with earnings news from BMW and PPR disappointing investors.
At 12.08 pm, the Dow Jones STOXX 50 added 13.25 points or 0.35 pct to 3,776.24, while the STOXX 600 gained 1.76 points or 0.47 pct to379.08.
Looking ahead, Wall Street is also looking at a higher open, after heavy losses seen last night. According to spread bettor IG Index, the Dow Jones Industrial Average is expected to open some 44 points higher at 13,587.
In Europe, the focus was on earnings results throughout the morning. 'There are still a lot of companies due out later this week and thus far it hasn't been bad at all. BMW disappointed, but apart from that we've seen a solid set,' one Frankfurt-based trader said.
'We have to really wait until the end and then draw the line,' he added, noting that investors are still cautious with regards to the implications of the crisis in the subprime market. He added that company fundamentals will play an important role in the upcoming quarters as shareholders assess the health of the global economy.
Today, automaker BMW disappointed somewhat and was sent 3.68 pct lower by investors. Higher costs and exchange rate effects were behind the weak results, but BMW also pointed to 'strong' business developments in the fourth quarter, with car sales of around 400,000 that would lead to 'very positive' earnings results in the last three months of the year.
Elsewhere, shares in Gas Natural SDG rose 4.43 pct after the utilities group reported strong nine month results with a net profit at the high end of forecasts and EBITDA beating expectations.
And Swiss Re shares climbed 1.96 pct on better-than-expected third quarter results, with the reinsurer attributing its strong performance to disciplined underwriting and a low incidence of natural disasters.
Meanwhile, Deutsche Post added 2.77 pct following reports that the logistics group is considering selling off vacant real estate worth 1-1.5 bln eur.
In broker action, shares in Ericsson gained 1.68 pct after Goldman Sachs upgraded the telecom equipment maker to 'buy' from 'neutral.' Goldman said the negative mix factors that led to the October profit warning will be rectified within 12-18 months or sooner, as nothing has changed fundamentally.
And CGG Veritas charged 2.42 pct ahead, while Tullow Oil added 3.32 pct. Both stocks will be added to the MSCI Provisional Global Standard starting on the close of Nov 30.
In the telecom sector, Portugal Telecom was up 3.50 pct after UBS lifted its recommendation to 'buy' from 'neutral,' following the completion of its PT Multimedia spin off which it says has changed the structure of the company.
A bullish note by Deutsche Bank gave a push to shares in ThyssenKrupp, up 2.66 pct. '2007 was a great year for ThyssenKrupp and we have indications that this scenario is likely to repeat in 2008,' the brokerage said in a note to clients.
Meanwhile, Natixis tumbled 6.3 pct after Fitch issued a ratings review of bond insurers, highlighting a 'high' risk of downgrade for Natixis subsidiary CIFG due to its exposure to collaterised debt obligations (CDOs), backed with subprime loans.
Later today, peer Commerzbank AG, up 0.11 pct, will be in the spotlight as it releases third quarter results, which analysts expect to come in robust. Analysts will particularly be looking for more clarity regarding Commerzbank's sub-prime related write-offs.
The bank set aside 46 mln eur in sub-prime provisions in the second quarter and said at the time that its expects to write off a similar sum in the third quarter. However, chief executive Klaus-Peter Mueller since said in an interview that the forecast sum will not be enough. patrizia.kokot@thomson.com pk/lht COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
At 12.08 pm, the Dow Jones STOXX 50 added 13.25 points or 0.35 pct to 3,776.24, while the STOXX 600 gained 1.76 points or 0.47 pct to379.08.
Looking ahead, Wall Street is also looking at a higher open, after heavy losses seen last night. According to spread bettor IG Index, the Dow Jones Industrial Average is expected to open some 44 points higher at 13,587.
In Europe, the focus was on earnings results throughout the morning. 'There are still a lot of companies due out later this week and thus far it hasn't been bad at all. BMW disappointed, but apart from that we've seen a solid set,' one Frankfurt-based trader said.
'We have to really wait until the end and then draw the line,' he added, noting that investors are still cautious with regards to the implications of the crisis in the subprime market. He added that company fundamentals will play an important role in the upcoming quarters as shareholders assess the health of the global economy.
Today, automaker BMW disappointed somewhat and was sent 3.68 pct lower by investors. Higher costs and exchange rate effects were behind the weak results, but BMW also pointed to 'strong' business developments in the fourth quarter, with car sales of around 400,000 that would lead to 'very positive' earnings results in the last three months of the year.
Elsewhere, shares in Gas Natural SDG rose 4.43 pct after the utilities group reported strong nine month results with a net profit at the high end of forecasts and EBITDA beating expectations.
And Swiss Re shares climbed 1.96 pct on better-than-expected third quarter results, with the reinsurer attributing its strong performance to disciplined underwriting and a low incidence of natural disasters.
Meanwhile, Deutsche Post added 2.77 pct following reports that the logistics group is considering selling off vacant real estate worth 1-1.5 bln eur.
In broker action, shares in Ericsson gained 1.68 pct after Goldman Sachs upgraded the telecom equipment maker to 'buy' from 'neutral.' Goldman said the negative mix factors that led to the October profit warning will be rectified within 12-18 months or sooner, as nothing has changed fundamentally.
And CGG Veritas charged 2.42 pct ahead, while Tullow Oil added 3.32 pct. Both stocks will be added to the MSCI Provisional Global Standard starting on the close of Nov 30.
In the telecom sector, Portugal Telecom was up 3.50 pct after UBS lifted its recommendation to 'buy' from 'neutral,' following the completion of its PT Multimedia spin off which it says has changed the structure of the company.
A bullish note by Deutsche Bank gave a push to shares in ThyssenKrupp, up 2.66 pct. '2007 was a great year for ThyssenKrupp and we have indications that this scenario is likely to repeat in 2008,' the brokerage said in a note to clients.
Meanwhile, Natixis tumbled 6.3 pct after Fitch issued a ratings review of bond insurers, highlighting a 'high' risk of downgrade for Natixis subsidiary CIFG due to its exposure to collaterised debt obligations (CDOs), backed with subprime loans.
Later today, peer Commerzbank AG, up 0.11 pct, will be in the spotlight as it releases third quarter results, which analysts expect to come in robust. Analysts will particularly be looking for more clarity regarding Commerzbank's sub-prime related write-offs.
The bank set aside 46 mln eur in sub-prime provisions in the second quarter and said at the time that its expects to write off a similar sum in the third quarter. However, chief executive Klaus-Peter Mueller since said in an interview that the forecast sum will not be enough. patrizia.kokot@thomson.com pk/lht COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
