Friday 2 December, 5:00 PM GMT (Thomson Financial): European markets ended
the day higher, despite some opening weakness on Wall Street. Corporate
newsflow was light, while investors awaited the release of the U.S.
employment situation report, which indicated that the economy had added
215,000 jobs in November, while the unemployment rate remained steady at
5.0%.
European markets were led higher by the basic resources sector, while the
insurance sector also performed strongly. Meanwhile, in the technology
sector, Nokia said it had a 20% cost advantage over its closest
competitor, while U.K. lender Alliance & Leicester said its full-year
results would be ahead of current market expectations.
London's FTSE-100 Index rose by 42.00 points or 0.77% to 5528.10, while
Paris's CAC-40 Index climbed by 26.04 points or 0.56% to 4662.50.
Frankfurt's DAX Index added 41.44 points or 0.79% to 5307.99 and Milan's
S&P MIB Index ended higher by 160 points or 0.46% to 34,745. The
pan-European blue chip Dow Jones Stoxx 50 Index gained 22.18 points or
0.67% to 3345.55.
* Nokia 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 & Leicester climbed 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.
* On a weaker note, U.K. pubs firm Wolverhampton & Dudley fell after its
full-year net profit 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 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
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SOURCE Thomson Financial Corporate Group
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