Tuesday 3 January, 5:00 PM GMT (Thomson Financial): European markets
retreated from their intra-day highs but remained positive after a
larger-than-expected fall in the U.S. Institute for Supply Management's
manufacturing index to 54.2 in December from 58.1 in November. After the
European close, the minutes from last month's Federal Open Markets
Committee (FOMC) meeting will be published and will be able to provide
further insight in the Federal Reserve's view of monetary policy.
Meanwhile, German unemployment in December declined by a seasonally
adjusted 110,000 compared to a revised decline of 55,000 in November.
The oil & gas sector was the lead performer on rising crude oil prices and
short-run trading volatility caused by a commercial dispute between
Russian state-run Gazprom and Ukraine over the purchase natural gas at the
going market rate. Elsewhere, Volkswagen was reported to have received
interest for its Europcar rental business as part of its extensive
restructuring programme, while betting group William Hill raised its full
year guidance. ThyssenKrupp sweetened its offer to acquire Dofasco,
matching Arcelor's offer while Spain's competition authority rejected Gas
Natural's bid for electricity company Endesa on competition grounds.
London's FTSE-100 Index rose by 62.70 points or 1.12% to 5681.50, while
Paris' CAC-40 Index climbed by 22.06 points or 0.46% to 4776.98.
Frankfurt's DAX Index gained 10.70 points or 0.20% to 5460.68 and Milan's
S&P MIB Index added 131 points or 0.36% to 36,093. The pan-European blue
chip Dow Jones Stoxx 50 Index ended up by 20.00 points or 0.60% to
3379.81.
* The oil & gas sector was in focus, owing to the dispute between Russia's
Gazprom and Ukraine. The latter is refusing Gazprom's demands to purchase
natural gas at the going market rate. Gazprom said it would increase
supplies to European customers to cover any temporary shortfalls and fresh
talks with Ukrainian officials were underway to resolve the current
stand-off. Meanwhile, European Union energy ministers are scheduled to
meet on Wednesday to discuss the impact of the dispute on member states.
* Shares in German automaker Volkswagen ended higher after a report in the
Financial Times reported that the company had 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 said Volkswagen and DaimlerChrysler were on the verge of a
collaboration to build a minivan in the United States.
* U.K. betting shop group William Hill raised its full year guidance, with
profits before interest, taxation and exceptional items expected to be
slightly above its previously indicated range of 230-240 million pounds.
* ThyssenKrupp increased its offer to acquire Dofasco to 63.00 Canadian
dollars per share from 61.50 dollars and will extend the date of
acceptance of its increased offer to January 25, 2006. The offer matched a
bid for Dofasco made by rival Arcelor on December 23, 2005.
* AstraZeneca 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.
* Spain's competition authority rejected Gas Natural's 22 billion euros
bid for electricity company Endesa on competition grounds, government
spokesman Fernando Moraleda confirmed. Moraleda said the court's decision
was not binding, but was an important step in the takeover process.
* WPP Group's wholly owned operating company Research International
acquired Pentor Instytut Badania Opinii i Rynku, an independent Polish
market research agency.
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 questions please e-mail James Sang at james.sang@tfn.com. For more
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SOURCE Thomson Financial Corporate Group
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