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Market Update

ECB Reaffirms Deflation Fight Commitment, InBev Extends SABMiller Deadline

Author: Nigel Thomas
Last Update: 10:39 AM ET November 04 2015

5:00 PM Frankfurt – ECB held out for additional steps to stimulate the euro zone economy at the next meeting in December. Axel Springerprofit soared 68%. Barry Callebaut net fell 3%. Marks & Spencer net tumbled 24% but lifted gross margin estimate for the year. AB InBev extended SABMiler offer deadline.

European financial markets reacted positively after the European Central Bank president, Mario Draghi reaffirmed central bank’s commitment to review monetary stimulus at the next meeting in December.

Draghi added that the central bank is “willing and able to use all the instruments available” and lifted market hopes that more measures will be announced at the next meeting.

DAX index in Frankfurt, the lone underperformer in the region, declined after Volkswagen AG plunged more than 9%.

The second-largest automaker in the world said it had understated emissions of carbon dioxide for 800,000 luxury cars in Europe, and had overstated the fuel economy.

Another disappointment in Germany came from the PMI data, the purchasing manager’s index, tracked by the private survey company Markit.

While the PMI readings in France were better than the initial estimates, the German figures fell below expectations.

In London trading, FTSE 100 index gained 65.67 or 1% to 6,449.13 and in Frankfurt the DAX index fell 25.43 or 0.2% to 10,925.20.

In Paris, CAC 40 index increased 51.11 or 1% to 4,987.08.

Axel Springer SE gained 0.8% to €51.89 after the Germany-based newspapers and magazines publisher said revenues in the third-quarter period ending in September jumped 7.3% from a year ago to €795.4 billion.

Net profit in the quarter soared 68.2% from a year ago to €146.9 million compared to €87.4 million and diluted earnings per share increased to €1.39 from €0.61.

Adidas AG increased 1% to €82.45 after the Germany-based sports footwear, hardware and apparel maker received government approval to launch its wholly-owned retail network in India.

Barry Callebaut AG tumbled 8.7% to 1,081 Swiss francs after the Switzerland-based cocoa, chocolate and confectionery products maker said sales revenues in the year ending in August surged 12.1% from a year ago to 6.24 billion francs.

Net profit in the year dropped 2.7% from a year ago to 239.9 million francs compared to 255 million francs.

Glencore Plc surged 7.1% to 127.80 pence after the Switzerland-based natural resource company’s subsidiary Anani Investment Ltd. signed a long-term agreement with Silver Wheaton Corp worth about $900 million to deliver silver from its Antamina mine in Peru.

Marks & Spencer Group Plc jumped 2.9% to 535.18 pence after the U.K.-based after the food, clothing and home products retailer said group revenues in the first-half ending in September rose 1% from a year ago to £4.95 billion.

Profit in the period tumbled 24.3% from a year ago to £170.7 million compared to £225.6 million and diluted earnings per share slipped to 10.4 pence from 13.8 pence.

The retailer lifted gross margin forecast in general merchandise for the year between 200 basis points to 250 basis points from the earlier estimated range of 150 basis points to 200 basis points.

SABMiller Plc fell 0.04% to 4,008.50 pence after the U.K.-based brewing and beverage maker said the U.K. Takeover Panel agreed to extend the deadline for rival Anheuser-Busch InBev to November 11 for cash offer of £44 per share or worth about $107 billion.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc