Steel Makers Lift Shares in Europe AROUND THE MARKETS STOCKS: PARIS
Posted on: Sunday, 29 January 2006, 09:00 CST
European stocks surged to their highest levels in more than four years, with steel makers including Corus Group soaring on speculation about mergers in the sector as Mittal Steel offered to buy Arcelor. ThyssenKrupp, Germany's largest steel maker, and Porsche, the most profitable automaker, both jumped after reporting better-than-expected profits. BHP Billiton and Statoil ASA paced gains by mining companies as copper and oil prices climbed. Peninsular & Oriental Steam Navigation rose as Dubai raised its bid for the Britain's largest port operator. The Dow Jones EuroStoxx 50 rose 23.17 points to 3,664.59. The FTSE 100 in London rose 57.40 points to 5,780, and the CAC 40 in Paris rose 64.11 points to 4,940.63. The DAX in Frankfurt rose 57.23 points to 5,606.14.
"M&A activity and corporate earnings underpin the equity market," said Bob Parker, deputy chairman of Credit Suisse Asset Management in London. "Investors now are coming around to the correct perception that first-quarter numbers are going to be very good." European stocks also followed gains by Asian and U.S. markets. Sony of Japan surged the most in 15 years after saying it expected to post a profit instead of a loss, bolstered by sales of televisions and game consoles. U.S. stocks rose the most in three weeks on Thursday after companies including Caterpillar and Honeywell International lifted profit forecasts. Optimism about the German economy and profit growth in the United States has driven the gains this week. Germany increased its 2006 economic growth forecast this week, and the Ifo institute said business confidence had risen to the highest level in more than five years. Shares of Mittal Steel and Arcelor, the world's two biggest steel makers, were suspended from trading in Europe. Mittal bid 18.6 billion for Arcelor.
The Nikkei 225 average in Tokyo jumped 569.66 points, or 3.6 percent, to 16,460.68, the largest surge since October 2002. South Korea's Kospi added 2.4 percent, and India's Sensitive Index climbed to a record.
Source: International Herald Tribune
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