Portfolio

Europe open: Stocks rise slightly at the start

Date: Monday 02 Jul 2012

Europe open: Stocks rise slightly at the start

-Banks deposit €772.9bn overnight at ECB
-China looking at Spanish assets
-Some analysts want more detail on Europe bail-out
-Chinese and Japanese data slightly better than expected

FTSE-100: 0.31%
Dax-30: 0.14%
Cac-40: 0.33%
Ibex: -0.68%
FTSE-Mibtel: -0.30%
Stoxx 600: 0.37%


The major European equity benchmarks have begun the first day of the new quarter trading slightly higher, following through on Friday´s advance in risk assets.

That on a week in which the Bank of England is expected to move on monetary policy, with the European Central Bank following in its wake.

Acting as a backdrop, there is a fair bit of commentary this morning regarding the need for European authorities to flesh out the details of last week´s summit. Some observers also seem worried that Spain may "low-ball" its estimate of how much additional capital its banks need.

Important economic indicators are due for release this afternoon Stateside. As well, data out overnight in China and Japan came in slightly ahead of forecasts.

China looking at Spanish assets



Chinese state-held utilities company State Grid has made an offer for
Spain's public gas and electricity network companies. The approach has been rebuffed by Madrid, according to El Mundo.

Linde was an earlier riser after agreeing to pay $4.6bn for US outfit Lincare Holdings.

Fresenius AG did not manage to win the minimum acceptance among Rhoen-Klinikum AG shareholders for its takeover offer.

From a sector stand-point, and within the DJ Stoxx 600, the best performance is now to be seen in the following industrial groups: technology (1-07%), banks (1.26%) and construction (1.19%).

Economic data slightly ahead of forecasts



The Eurozone manufacturing sector purchasing managers´ index for the month of June has come in at 45.1, the same as last month (Consensus: 44.8).

Profit taking in crude futures



The euro/dollar is now trading is now off by 0.33% to the 1.2640.

Front month crude futures are down now by 1.463 dollars, at the 96.39 dollar per barrel level in ICE trading.

AB

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