Europe Close Market Report

Date: Tuesday 18 May 2010

Europe’s main markets closed with good gains as fears over the European debt crisis waned.

Greece on Tuesday received a €14.5bn loan from the European Union to repay its immediate debt.

Elsewhere, European Union finance ministers agreed the need for new curbs on the hedge fund industry. The EU said ministers “agreed a mandate for negotiations with the European parliament” to harmonise hedge fund regulation.

The draft directive is aimed at “establishing a harmonised framework for monitoring and supervising the risks that alternative investment funds pose to their investors, counterparties, other market participants and to financial stability,” according to a EU press statement.

Across the markets, the Dax in Frankfurt closed 89 points higher at 6,156, with the Cac in Paris up 74 points at 3,617. The Swiss market gained 42 points at 6,471.

Societe Generale, Credit Agricole and BNP Paribas were in demand in Paris, with Germany’s Commerzbank and Deutsche Bank also going well.

German exchange operator Deutsche Boerse got a boost after Goldman Sachs upped its stance on the group to neutral from sell.

On the corporate earning front, mobile giant Vodafone expects to see revenues in its core business grow again in the current year despite after recent declines with a promise of annual dividend growth of at least 7% for the next three years.

"We are creating a stronger Vodafone, which is positioned to return to revenue growth during the 2011 financial year, as economic recovery should benefit our key markets," chief executive Vittorio Colao said.

Turnover in the year to March rose by 8.4% to £44.5bn, but on an organic basis fell by 2.3%, though demand for data and fixed broadband saw that figure improve to a decline of 0.2% in the last three months of the year. Customer numbers increased to 341m, with 8.5m net additions in the past three months.

AstraZeneca has signed a deal with Teva Pharmaceuticals USA to settle patent litigation regarding Teva's proposed generic version of Astra's Entocort EC (budesonide) capsules used to treat Crohn's disease.

The Anglo-Swedish drug giant has granted Teva a license to enter the US market with its generic version of oral budesonide on 15 February 2012, subject to regulatory approval, or earlier in certain circumstances.

Elsewhere, eurozone consumer price inflation rose to a 16-month high of 1.5% in April, pushed up by higher energy prices. The rise, up from 1.4% in March, was in line with expectations. However, core consumer price inflation, excluding energy and unprocessed food prices, fell back to 0.7% from 0.9% in March.

Seasonally adjusted exports jumped 7.5% month-on-month in March after a 3.4% increase in February.

Germany’s ZEW think-tank said its May economic expectations index fell to 45.8 from 53.0 in April.


CAC 40 - Risers
EADS (EAD) € 16.98 +6.16%
Societe Generale (GLE) € 37.13 +4.74%
Vallourec (VK) € 160.15 +4.50%
Schneider Electric (SU) € 82.20 +3.85%
BNP Paribas (BNP) € 49.31 +3.17%
PPR (PP) € 104.60 +3.10%
AXA (CS) € 13.40 +3.04%
Saint Gobain (SGO) € 33.94 +2.86%
Technip (TEC) € 55.97 +2.77%
Unibail-Rodamco (UL) € 132.00 +2.72%

CAC 40 - Fallers
L'Oreal (OR) € 74.08 -0.05%