UK/Euro Financial Market Daily Morning Briefing 28-06-2007

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London shares push higher at open after Wall Street rally overnight

UK blue chips pushed higher in opening deals this morning, recovering from yesterday's weak showing in tandem with a rally overnight on Wall Street, although underlying caution remained ahead of this evening's US interest rate decision.
   
At 9.18 am, the FTSE 100 index was 42.7 points higher at 6,570.3, with all the broader FTSE indices also rallying strongly -- the FTSE 250 index jumped
115.8 points higher to 11,5507.7.
   
Early volume was solid, with 418 mln shares changing hands in 69,337 deals.
   
Overnight on Wall Street, US blue chips reversed a three-day losing streak to end higher as takeover deals and some strong earnings reports offset the nerves ahead of today's Fed rate decision.
   
The DJIA closed 90.07 points higher at 13,427.73, after dropping 77 points earlier in the day, recouping a chunk of the 208 points lost in the previous three sessions.
   
The broader indices also rose, with the S&P 500 index ending 13.45 points firmer at 1,506.34, and the tech-laden Nasdaq composite index finishing 31.19 points stronger at 2,605.35, boosted by post-result gains in software firm Oracle.
   
The buying continued today in Asia. The Nikkei 225 Index ended 82.99 points higher at 17,932.27 bolstered by Wall Street's rebound and a slight softening of the yen.
   
Meanwhile the Hang Seng Index closed 232.66 points higher at 21,938.22 helped by portfolio sprucing activity by fund managers ahead of the closing of books for the first half.
   
Oil prices were firmer in Asian trade after the latest US inventory report showed a decline in gasoline reserves, surprising analysts who expected an increase.
   
New York's main oil futures contract, light sweet crude for delivery in August, was 15 cents higher at 69.12 usd a barrel from 68.97 usd in late US trading Wednesday. Brent crude for August added three cents to 70.56 usd.
   
In London, Diageo was an early corporate feature, shedding 12 pence at 1,052 on profit-taking after the drinks group's latest trading update came in just in line with expectations.
   
The firm reiterated its guidance for 8 pct full-year organic operating profit growth, adding it expects total organic net sales growth to be higher than in the first half.
   
Otherwise among the handful of blue chip fallers, profit-taking was the order of the day - AstraZeneca, a big gainer yesterday, lost 15 pence at 1,644, with Centrica down 0-3/4 pence at 385 after broker-inspired gains Wednesday, and BAE Systems off 409-3/4.
   
On the upside, strength in heavyweight mining issues was the main fuel for the FTSE gainers, with the sector rallying with commodity prices after recent falls -- Xstrata gained 55 pence at 2,995, BHP Billiton firmed 25 pence at 1,371, and Rio Tinto added 70 pence at 3,760.

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US Summary

For a summmary of US stocks at yesterday's close of trade, click here

Frankfurt

DAX - up 100.75 points, or 1.29 pct, at 7,901.98

MDAX - up 206.65 points, or 1.92 pct, at 10,964.07

TecDAX - down 15.69 points, or 1.73 pct, at 921.63

DAX futures - down 18.00 points, or 0.22 pct, at 7,882.61

Major Advancers:
  
MAN, up 2.43 eur or 2.40 pct at 103.67, rebounding after 6 days of declines
  
ThyssenKrupp, up 0.97 eur or 2.28 pct at 43.59, after recent falls
  
Linde, up 1.80 eur or 2.13 pct at 86.12
  
Henkel, up 0.79 eur or 2.11 pct at 38.30, after bullish note from Morgan Stanley, which reaffirmed its 'overweight' stance
  
Volkswagen, up 2.29 eur or 2.02 pct at 115.89

Major Decliners:
None

Other Major Movers:
  
Deutsche Boerse, up 0.95 eur or 1.18 pct at 81.75, after upgrade to 'hold' from 'reduce' at WestLB, on valuation grounds.
  
BMW, up 0.58 eur or 1.23 pct at 47.82, after production head Frank Arndt told Handelsblatt newspaper he is confident of exceeding productivity target this year
  
MDAX-listed IKB Deutsche Industriebank AG, up 0.85 eu ror 3.26 pct at 26.95, after UBS upgraded its stance on the bank to 'buy' from 'neutral' and maintained its price target at 32.00 eur
  
MDAX-listed Celesio up 1.27 eur or 2.75 pct at 47.50, after Credit Suisse initiated coverage with an 'outperform' rating and a price target of 57 eur 

Vienna

Main Indices
   
ATX up 0.94 pct or 44.44 points at 4,808.47

ATX Prime up 0.77 pct or 18.45 points at 2,421.71

Main Gainers
   
BWIN up 2.18 pct at 23.92 eur, after fair value placed at 40.10 eur at Oppenheim

Wienerberger up 1.95 pct at 53.98 eur, on bargain hunting after recent losses

voestalpine up 2.05 pct at 59.81 eur, on positive Moody's steel sector review

A-TEC Industries up 1.51 pct at 188.50 eur

Zumtobel up 1.45 pct at 28.02 eur

RHI up 1.43 pct at 39.60 eur

Raiffeisen International Bank up 1.33 pct at 117.21 eur

OMV up 1.24 pct at 48.09 eur, on rising price of oil

Flughafen Wien up 1.19 pct at 72.86 eur

Main Loser
   
Intercell down 0.13 pct at 23.80 eur, on profit taking

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MAJOR INDICES

AEX 544.44, up 0.89 pct

AMX Midcap 723.19, up 1.06 pct

Government bonds mostly lower

MAJOR GAINERS
   
DSM up 2.28 pct at 36.83 eur after announcement of 100 mln eur profit improvement programme, upgrade to 'buy' from 'hold' at T. Gilissen
   
Numico up 2.01 pct at 38.52
   
Corporate Express 1.79 pct higher at 11.40
   
Randstad 1.21 pct stronger at 58.50 after upgrade to 'outperform' from 'neutral' in Credit Suisse staffing sector review
   
BAM 2.61 pct stronger at 20.87
   
ASMI up 1.83 pct at 19.99

MAJOR DECLINERS

Vedior 0.95 pct lower at 21.89 eur after Credit Suisse downgrade to 'neutral' from 'outperform'
   
Unibail-Rodamco loses 0.30 pct at 192.89
   
Van der Moolen off 0.53 pct at 3.77

Madrid

IBEX-35 index up 149.1  points at 14,832.0  
   
Major gainers:
   
Acciona, up 4.90 eur or 2.47 pct at 203.2, after a report in Expansion that it has acquired the wind energy projects of EcoEnergy in the US as part of its investment plan to 2009.
   
Other constructors, with FCC up 0.95 at 68.00 and Ferrovial up 0.90 at 72.35.
   
Leading heavyweights, with Telefonica up 0.17 at 16.52, Santander up 0.15 at 13.74, and BBVA up 0.15 at 18.11.
   
Sacyr, up 0.34 at 35.46, rebounding from yesterday's heavy losses. Cinco Dias reported that the Spanish constructor is studying making a new bid for Eiffage if all the legal options against the French market regulator AMF fail.
   
Altadis, up 0.39 at 49.32, ahead of its AGM and after a report in the Wall Street Journal that Imperial and CVC will formalize competing bids in the next few days.
   
Astroc, up 0.37 at 9.86, after chairman Banuelos said he is considering resigning amid criticism of ismanagement. 
  
Major underperformers:  
Gas Natural, up 0.44 at 44.73, after confirmation that Suez has requested permission from energy watchdog CNE to raise its stake to 11.4 pct, dampening expectations that the French utilty may attempt to acquire up to 24.9 pct.  
   
Iberdrola, up 0.26 at 41.09, extending yesterday's weakness after announcing a 3.374 bln eur capital hike and further weighed after Goldman Sachs lowered its price target to 46 eur per share from 47 eur per share.   
   
Sogecable, up 0.34 at 31.44, off yesterday's strong gains after announcing an agreement to share content with Telefonica.

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Market broadly higher

Major indices:

CAC-40 up 47.61 points or 0.80 pct at 5,989.28

SBF-80 up 58.99 points or 0.83 pct at 7,186.20

SBF-120 up 34.31 points or 0.79 pct at 4,366.57

Volume: 511 mln eur

38 CAC-40 stocks up

2 CAC-40 stocks down
   
Major gainers:

Alstom, up 2.12 eur or 1.78 pct at 121.40, after French railway SNCF confirmed a 2.1 bln eur train order.

Areva, up 13.85 eur or 1.77 pct at 794.85, after the magazine Challenges reported Siemens may exercise a put option on its 34 pct stake in Areva NP, a nuclear engineering joint venture with Areva.

Danone, up 1.03 eur or 1.76 pct at 59.54, after Challenges reported the company may sell its LU biscuits division.

Major losers:

Carrefour, down 0.02 eur or 0.04 pct at 51.77, after saying it will appeal a fine for dishonest business practices.

Essilor, down 0.01 eur or 0.01 pct at 87.37

Most active stocks:

Total, 52 mln eur, up 0.62 eur or 1.08 pct at 58.08

Societe Generale, 38 mln eur, upo 0.83 eur or 0.60 pct at 138.15

France Telecom, 32 mln eur, up 0.16 eur or 0.78 pct at 20.66 

Copenhagen

Major indices
   
OMXC20 up 4.91 points at 479.85 

OMXCB up 4.60 points at 463.28

OMXC up 3.91 points at 471.38

Turnover

748 mln dkr

Major gainers
   
Vestas Wind Systems up 8.00 dkr at 360.00

AP Moller Maersk up 600 dkr at 66,100

FL Smidth up 4.00 dkr at 426.00

GN Store Nord up 1.50 dkr at 63.75

Novozymes up 11.00 dkr at 628.00

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