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Market Update

Sweden Lowers Rate to Negative, Credit Suisse Net Swings to Profit

Author: Nigel Thomas
Last Update: 11:04 AM ET February 12 2015

4:00 PM Frankfurt Alstom-Bombardier consortium received order for ten MI09 double-deck trains worth about 150 million. Commerzbank profit surged to 602 million as residential mortgage finance rose and loan loss provisions fell. Credit Suisse net swung to profit to 921 million francs. Total net swung to loss.

European markets traded higher after finance chiefs in the euro zone and Greece fail to sign a deal but appear to get closer to a compromise and avert confrontation.

Finance ministers agreed to postpone the decision after a meeting of political leaders this week in Brussels.

In addition, leaders of Germany and France and Russia and Ukraine agree on cease fire deal but how long the agreement will last is a suspect.

In London trading, FTSE 100 index rose 0.3% or 22.18 to 6,840.35 and in Frankfurt the DAX index climbed 1.8% or 191.20 to 10,943.31.

In Paris, CAC 40 index jumped 1.3% or 59.84 to 4,739.22.

Sweden lowered its benchmark rate to negative 0.1% and also said it begin government bond purchase program.

Sweden will join Denmark and Switzerland to impose negative rate ahead of European Central Bank plan to purchase 60 billion of bonds a month from the next month.

Sweden is a member of the European Union but it is not in the euro zone.

Alstom SA rose 0.3% to 28.17 after the transport and energy infrastructure developer said STIF ordered additional ten MI09 double-deck trains to Alstom-Bombardier consortium worth about 150 million. The company portion of the contract is 95 million.

Separately, the company secured contract of 61 million from PT Pertamina Geothermal Energy to supply and install 30 Megawatt geothermal plants for the Karaha Power Plant in West Java, Indonesia.

Commerzbank AG declined 0.7% to 11.20 after the Germany-based lender reported net interest income in the year ending in December fell 1.3% to 6 billion from 6.08 billion a year ago period.

Profit in the year surged 643.2% from a year ago to 602 million compared to 81 million.

The bank said revenues before loan loss provisions in the year dropped 2% to 9.09 billion from 9.28 billion and provisions for loan losses in the year declined 34.9% to 1.14 billion from 1.75 billion a year ago period.

In 2014, new business in residential mortgage financing soared 31% to 10.4 billion and the number of net new customers increased by approx 288,000.

Credit Suisse Group AG, the Switzerland-based investment bank and asset manager said net revenues in the fourth-quarter ending in December climbed 8% to 6.38 billion Swiss francs from 5.92 billion francs a year ago period.

Net in the quarter swung to profit from a year ago to 921 million francs compared to a loss of 476 million francs and earnings per share swung to 0.53 francs from a loss of 0.37 francs.

The banking group also offered shareholders a choice to receive dividend in cash or share.

Electricite de France SA declined 4.3% to 23.31 after the France-based nuclear power operator reported sales in the year ending in December rose 1.3% to 72.87 billion from 71.92 billion a year ago period.

Net income in the year jumped 5.2% from a year ago to 3.70 billion compared to 3.52 billion and earnings per share slipped to 1.78 from 1.84.

EDF said group earnings before interest, tax, depreciation and amortization climbed 6.5% to 17.28 billion

Total S.A gained 1.1% to 23.31 after the France-based oil and gas producer said sales in the fourth-quarter ending in December plunged 19% to $52.51 billion from $64.98 billion a year ago period.

Net in the quarter swung to a loss from a year ago to $5.66 billion compared to profit of $2.23 billion.

The oil and gas producer said hydrocarbon production in the quarter dropped 2% to 2.23 million barrels of oil equivalent per day compared to same period a year ago.

The company announced quarterly dividend of 0.61 per share and annual dividend of 2.44 per share, a growth of 2.5% from a year ago period.

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