Portfolio

Europe midday: EU summit cheer holds for another day

Date: Monday 02 Jul 2012

Europe midday: EU summit cheer holds for another day

-UBS cuts S&P 500 target to 1,375 from 1,475
-Morgan Stanley upgrades European equities to neutral
-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: 0.50%
Dax-30: 0.97%
Cac-40: 1.13%
Ibex: -0.30%
FTSE-Mibtel: -0.01%
Stoxx 600: 0.91%


The major European equity benchmarks are holding higher on the first day of trading of the new quarter, 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 was 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 (1.66%), basic resources (1.65%) and banks (1.53%).

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 0.51% to the 1.2600.

Front month crude futures are down now by 1.811 dollars, at the 96.02 dollar per barrel level in ICE trading.

AB

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