Friday 2 December, 10:15 AM GMT (Thomson Financial): European markets are
trading slightly higher, benefiting from overnight rises on Wall Street and in
Asia. Equities are being driven higher by the basic resources sector and by
the technology sector, as shares in Nokia climb following its capital markets
day. Elsewhere, in the banking sector, U.K. lender Alliance & Leicester is
higher after saying it expected its full-year results to exceed market
expectations.
Meanwhile on the economic side, the Swedish Riksbank has left interest
unchanged at 1.50%, but cautioned that rates might rise more quickly than the
market is currently expecting, while investors are awaiting the release of the
U.S. employment report later this afternoon.
London's FTSE-100 Index has risen by 21.90 points or 0.40% to 5508.00,
while Paris's CAC-40 Index has added 9.28 points or 0.20% to 4645.74.
Frankfurt's DAX Index is higher by 20.31 points or 0.39% to 5286.86 and
Milan's S&P MIB Index has gained 98 points or 0.28% to 34,683. The pan-
European blue chip Dow Jones Stoxx 50 Index has climbed by 11.25 points or
0.34% to 3334.62.
* Shares in Nokia are solidly higher following the telecom equipment
manufacturer's capital markets day. The company said it expected mobile
industry volumes in 2006 to be 10% higher than in 2005, adding that it
was targeting a 17% operating margin, with an operating margin of 17-18%
for Mobile Phones and Multimedia combined. At the same time, the
company's chief financial officer later said the firm enjoyed a 20% cost
advantage over its closest competitor.
* U.K. lender Alliance and Leicester is also trading higher after saying
in a trading update that it expected its full-year core operating profit
to be above the average of 506 million pounds currently expected by the
market. The bank added that its total group revenues would be slightly
higher than last year, but added that operating costs were forecast to
be significantly below last year's 714 million pounds.
* U.K. pubs firm Wolverhampton & Dudley's full-year net profit has tumbled
to 3.5 million pounds, from 22.8 million pounds last year, weighed down
by 30 million pounds of refinancing costs. However, pre-tax profits
before goodwill and exceptional items rose to 90.1 million pounds from
77.7 million pounds before, as turnover climbed by 7.4% to 551.8 million
pounds. However, Chief Executive Ralph Findlay said that trading
conditions since the year-end were more subdued due to weaker consumer
confidence.
* Brewer Carlsberg said it had sold an 11.9% stake in South Korea's Hite
Brewery for 1.9 billion Danish kroner. The company added that it would
use the sale proceeds to cut its group debt. As a result, Carlsberg's
stake in Hite Brewery now stands at 13.1%.
* On the economics side, the Swedish Riksbank has left its interest rates
unchanged at 1.50%, saying that UND1X inflation was expected to rise
gradually and eventually be in line with the 2% target a couple of years
ahead, based on the market assumption that rates would rise at the
beginning of next year. However, the central bank added that it could
not rule out the possibility that rates would have to rise more than the
market was currently forecasting.
Olivier.Masson@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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