4:30 PM Frankfurt – European markets traded higher after German factory orders increased more than expected and earnings at Societe Generale, Commerzbank, HSBC and Allianz were ahead of expectations. German factory orders increased 2.2% in March. Portugal successfully sold long term bonds for the first time in two years.
Markets in Europe advanced across the currency zone.
FTSE 100 index in London gained 0.4% and the DAX 30 index soared 0.9% and the CAC 40 index in Paris advanced 0.7%.
Market sentiment was also bolstered after the second largest French bank Societe Generale reported lower than expected decline in net income and Germany based Allianz SE reported 24% increase in quarterly net.
Commerzbank swung to quarterly profit and HSBC Holdings quarterly net more than doubled to $6.35 billion.
German factory orders adjusted seasonal factors and inflation increased 2.2% in March compared to similar increase in February, the Economy Ministry in Berlin said today.
Export orders increased 2.7% and orders from the euro zone advanced 4.2%, according to the report. Domestic sales increased 1.8% and consumer goods orders decreased 0.7%.
Swiss unemployment held unchanged at a 2-year record at 3.1% in April.
Portugal placed long term bonds for the first time since the €78 billion bailout two years ago today. Finance Minister Victor Gaspar said today demand for 10-year bond at 5.5% yield is expected to be around €9 billion.
Stocks in Review
dropped 12% after the third largest power equipment maker in the world lowered its 2013 outlook and missed its full-year earnings estimate.
gained 1.5% to €10.97 after the Germany based lender reported net interest income in the first quarter ending in March dropped 19.5% to €1.36 billion. Consolidated loss in the quarter swung to €94 million compared to profit of €355 million a year ago.
HSBC Holdings Plc
jumped 2.9% to 734.50 pence after the UK based bank reported revenue in the first quarter ending in March jumped 14% to $18.42 billion. Profit for the quarter more than doubled to $6.35 billion compared to $2.58 billion and diluted earnings per share soared 33 cents from 13 cents a year earlier.
soared 7.3% to €57.30 after the Germany based construction group agreed to sell its airport segment AirPort GmbH, Essen to Public Sector Pension Investment Board of Canada. The transaction proceeds are nearly €1.1 billion and closing is expected in the second half of this year.
Hochtief, lifted business outlook and expects consolidated net profit is estimated between €210 million and €250 million. New orders in the quarter ending March to €5.55 billion compared to €7.69 billion a year ago period. Operating earnings EBITA to €189.1 million
Consolidated net in the quarter swung to €43.5 million profit compared with a consolidated net loss of €34.8 million in the prior-year period.
increased 4% after the largest cement maker reiterated its full-year earnings outlook despite the first quarter sales were lower than expected on Algerian and Egyptian production and cold weather in Northern Europe.
declined 1.2% to 1,140 pence despite the largest UK based insurer reported first quarter revenues of more than expected 1.04 billion pounds.
soared 6.5% after first-quarter profit declined 50% on charges linked to its debt but were still ahead of expectations at €364 million.