Tuesday 3 January, 10:15 AM GMT (Thomson Financial): European markets have
opened higher and are posting fresh four and a half year highs, with the oil &
gas sector in focus with continental customers being impacted by the natural
gas dispute between Russia and Ukraine. Meanwhile, the basic resources sector
is also performing well, especially amongst mining stocks on the heels of
stout gains in Australia. Automobiles stocks are higher as press reports
suggest that Volkswagen has received interest for its Europcar rental business
as part of its extensive restructuring programme.
In macroeconomic news, German unemployment in December has declined by a
seasonally adjusted 110,000 compared to a revised decline of 55,000 in
November. Later today, the minutes from last month's U.S. Federal Open Markets
Committee meeting will be released, hopefully providing investors with further
insight as to when the current U.S. interest rate hike cycle will end as Ben
Benanke prepares to take over Alan Greenspan's chairmanship.
London's FTSE-100 Index is up by 52.60 points or 0.94% to 5671.40, while
Paris's CAC-40 Index is trading higher by 43.86 points or 0.92% to 4798.78.
Frankfurt's DAX Index has gained 42.41 points or 0.78% to 5492.39 and Milan's
S&P MIB Index has added 260 points or 0.72% to 36,222. The pan-European blue
chip Dow Jones Stoxx 50 Index has climbed by 36.39 points or 1.08% to 3396.20.
* The oil & gas sector is in focus, as European natural gas customers
report a drop in supplies from Russia, which are currently piped via
Ukraine. The latter is refusing the demands of Russian state-run Gazprom
to purchase natural gas at the going market rate. Gazprom says it will
increase supplies to European customers to cover any temporary
shortfalls.
* Shares in German automaker Volkswagen have opened higher with a report
in The Financial Times reporting that the company has received interest
from six parties for its Europcar rental business as part of its
extensive restructuring programme. Meanwhile, a report in the
Frankfurter Allgemeine Zeitung says Volkswagen and DaimlerChrysler are
on the cusp of a collaboration to build a minivan in the United States.
* U.K. betting shop group William Hill has raised its full year guidance,
with profits before interest, taxation and exceptional items expected to
slightly above its previously indicated range of 230-240 million pounds.
* AstraZeneca has submitted a supplemental New Drug Application to the
U.S. Food and Drug Administration to seek approval for use of Seroquel
in the treatment of patients with depressive episodes associated with
bipolar disorder.
Simon.Tse@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary. The
information herein is believed to be true and accurate. If you have any
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SOURCE Thomson Financial Corporate Group
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