10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – European markets edged higher as a rise in energy and metals prices in the region lift stocks in the sector.

Global Markets Update

European markets edged higher reflecting strength in the commodities companies and a rise in metals and crude oil prices. The Bank of France lowered its forecast for the second quarter economic growth to 0.3%, half the first quarter rate of growth. Manufacturing industry confidence index fell in the country as the rising euro takes its toll on exports.

European market movers

Of the DAX 30 shares, Deutsche Boerse led the decliners. It fell 1.9% or 2.04 followed by Commezbank at 1.4%. Deutsche Telecom traded weaker at 1.2% and Mennechener lost 1.1% while TUI AG declined 0.8%. Man AG gained 3.5% or 3.51 and the stock led the advancers in the index stocks in Germany.

E.ON AG climbed 3%, RWE AG added 2.6%, Infineon Tech jumped 2.5% and Henkel jumped 2.1%.

In Paris trading, Schneider Electric gained 4.4% and led the gainers in the CAC 40 index. EDF added 3.6% to 69.51 euros, Suez and Total climbed 3.11% each to 45.36 and 58.205 euros respectively. ArceloMittal surged 2.34% to 65.89 euros. Societe Generale lost 2.4% to 70.30, Alcatel fell 1.2% to 48.20, Dexia declined 0.4% and France Telecom lost 0.6% to 20.32 euros.

In the UK trading, Vedanta Resources gained 8.6%, followed by Eurasian Natuaral at 6.3%, Lonmin at 6% and Anglo America at 4%.


U.S. stocks edged higher on a rally in tech and transportations stocks and on 0.1% rise in index of leading indicators. The U.S. dollar rallied on the hopes that the economy may not slip into a recession. As the earnings season winds down, investors appear to take higher risk and show willingness to pay higher prices for stocks. Broker recommendations lifted Amazon.com, Union Pacific and National City Corp. Campbell Soup reported third quarter revenue rise of 7% to $1.8 billion and earnings gain of 59% to $532 million. Excel Maritime gained after earnings surged 213% on 94% rise in revenue.

UK stocks closed higher on a sustained rally in commodities and mining related stocks. A sharp rise in crude oil and coal prices lifted stocks in the sector. Crude oil, coal, copper and zinc hovered near record levels and Baltic Dry Index also indicated rising freight rates for commodities. UK newly listed homes asked 1.2% more than in May as sellers expect prices to rise. The private research group indicated that sellers may be forced to sell properties at a lower price.

Japanese steelmakers joined the world steel makers in passing higher coal and iron ore prices from Australia and Brazil to automakers in Japan. The sharp revision in steel prices is expected to be effective in the latest negotiations between Nippon Steel and Toyota and Mitsubishi Heavy. Australian iron ore miners have lifted prices of ore by more than 250% in the last five years and now coal prices have jumped 150% in the last two years. Weak U.S. dollar has also contributed to the price hike.

Chinese coal and other mining companies rose as crude oil price rise lifted spot prices of coal and metals. The earthquake damage and three month old snow storms have put the food and energy supply at a risk in the mainland China. Vegetables, fruits and other food priced have surged and now metal and crude oil prices are rising rapidly. CSI 300 index in Shanghai trading fell 0.6% but Hang Seng index rose 0.5%.

European Markets indexes

In London FTSE 100 Index closed higher 72.20 or 1.15% to 6,376.50, in Paris CAC 40 Index increased 64.06 or 1.26% to close at 5,142.10 and in Frankfurt DAX index higher 69.39 or 0.97% to close at 7,225.94. In Zurich trading SMI increased 125.22 or 1.64% to close at 7,778.93.

North American Markets indexes

Dow Jones Industrial Average rose 41.36 or 0.29% to a close of 13,028.16, S&P 500 closed up 1.22 or 0.01% to 1,426.57, and Nasdaq Composite Index decreased 12.76 or 0.50% to close at 2,516.09. In Toronto TSX Composite closed up 156.14 or 1.05% to 14,984.20 in Friday’s trading.

Of the 30 stocks in Dow Jones Industrial Average, 19 closed higher, 10 closed lower, and one was unchanged.

Alcoa led the gainers in the index with a rise of 3.5% followed by increases in Boeing of 2.8%, in Chevron of 1.9%, in ExxonMobil of 1.7% and in AT&T of 1.5%. Microsoft led the decliners in the index with a fall of 1.7% followed by declines in Wal-Mart Stores of 0.9%, in IBM of 0.8%, in Hewlett Packard of 0.82% and in AIG of 0.81%.

Of the stocks in S&P 500 index, 283 stocks increased, 211 declined, and 6 were unchanged. Of the stocks in the index, 13 stocks fell more than 3% and 15 gained more than 3%.

SanDisk led the decliners in the S&P 500 index with a loss of 7.6% followed by declines in SLM Corp of 6.6%, in Campbell Soup of 5.3%, in E*Trade Financial of 5.1%, in RadioShack of 4.4% and in KB Home of 4.11%. Amazon.com led the gainers in the S&P 500 index with a rise of 8.15% followed by gains in Vulcan Materials of 7.6%, in National City Corp of 4.8% and in Titanium Metals of 4.7%.