Merger Activity, Weak Oil Boost Europe

Market Update Analysis:

Author: Elena Todorova
123jump.com
Last Update: 1:15 PM EST November 20 2006

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European stock markets closed in the positive Monday, lifted by merger activity in the metal and exchange sectors and weaker crude oil prices. The German DAX 30 led the regional gainers with an advance of 0.62%. The index was boosted by 2% gain for defensive utility stocks RWE and E.On, as well as lower oil. The French CAC 40 gained 0.28% and London FTSE 100 added 0.2%. Oil sensitive stocks contributed to the advance, with airline Air France-KLM and cruise operator Carnival moving higher.

Advancers

RTL Group, the pan-European broadcaster which had been in talks with ITV, gained 0.9.

Stock exchange operator Deutsche Borse rose 2%, getting its boost from takeover speculation after Nasdaq, the US trading platorm, launched a $5.1 billion bid for London Stock Exchange. LSE shares gained 5.7%.

Swiss Re gained 1.8% after the reinsurer said clients had put in the lowest claims in 10 years, while premiums had remained robust.

Oil and gold

Light sweet crude oil for January delivery was down 59 cents to $58.38 a barrel in electronic trading on the NYME. January Brent crude at London ICE Futures exchange was down 68 cents to $58.31 a barrel.

Gold traded at $624.10 an ounce on Monday, up $5.90 an ounce from Friday close of $618.20.

Currencies

The euro traded at $1.2836, from $1.2829 in New York. The yen traded at 151.57 against the euro. It was at 118.08 per dollar from 117.75. Against the dollar, the British pound was at $1.8979 in London, from $1.8946 late on Nov. 17.

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