World Economy: Strong corporate figures from Europe and the U.S. worked for the Euro Stoxx 50 upward.

Apr 30, 2012

Strong corporate figures from Europe and the U.S. worked for the Euro Stoxx 50 upward.

With strong price gains have been Europe's stock markets on Wednesday approved the trade. Strong corporate figures from Europe and the U.S. worked for the Euro Stoxx 50 upward. The price drop on Monday was thus even more than made up. The returns of the EU's emerging markets fell, also reported from Iran conciliatory voices to the ongoing nuclear program. The euro hovered before the meeting of the Federal Reserve in the evening at $ 1.32, but fell below this level, after the Federal Reserve had confirmed their low interest rate policy.

The impetus for the rally had been excellent quarterly results of the technology giant Apple. The iPhone maker had doubled in the fiscal second quarter, its profit almost. "It is surprising that Apple has achieved thanks to good sales of almost the result of the holiday season," said one market participant. The Euro Stoxx 50 rose 1.7 percent to 2323 meters, while the DAX in 6705 by 1.7 percent points. In Milan, it was thanks to strong banking shares as much as 2.9 percent up.

Fed sticks to low interest rate policy - Italy and Spain returns down

The accompanying commentary on the interest rate decision by the U.S. central bank contained at first glance, nothing new. Central message was that the Federal Reserve will hold until the end of 2014 its policy of extremely low interest rates.

The auction 30-year German bunds met relatively little interest. in Germany at a glance. The targeted issue volume of EUR 3 billion was achieved only with the support of the Bundesbank. The market but this is not disturbed, even though the rate of return of 2.41 percent, the lowest that has ever been paid for such bonds. This is simply not attractive enough for investors, it said in the trade.

Otherwise, there was relaxation of the interest rate front: Spanish yields fell to 5.75 percent, well below the dreaded 6-percent mark, Italian fell to 5.61 percent. In France, the yield dropped to just under 3 percent. The shares of the banks helped to strong price gains.

Course fireworks at banks

Banks were among the leading course winners. In the sector, especially the shares of French and Italian banks rose by up to about 6 percent. In addition to the sharp decline in yields on government bonds from the periphery of the Euro zone and positive numbers drove the Spanish BBVA., Whose price rose by 2.2 percent, the analysts at Nomura called it "solid". Well, the increase in core capital ratio to 10.7 percent liked. Among other things, designed in Italy Unicredit to 6.7 percent in France, Societe Generale and Credit Agricole down 6.3 percent to 5.9 percent. In Germany, Commerzbank jumped by 5.2 percent and 2.1 percent German bank. At Deutsche Bank, have only the restraint before the numbers slowed down a bit on Thursday, it said. The banking sector rose by 1.7 percent.

Good corporate data from the U.S. and Europe - cars daily winner

In addition to Apple, companies shone from "traditional" industries with their financial results and earnings expectations. "The market was the economic slowdown perhaps overrated," said one trader. Among other Caterpillar and Boeing increased their forecasts in the U.S., Europe, Air Liquide and put the auto parts supplier Valeo highlights. Air Liquide moved up 2.5 percent to 98.08 euros, the German rival Linde 3.4 percent to 128.35 euros. "The numbers are strong. Both total turnover and the turnover in the main gas & Services division are on the highest analyst estimates," one trader said of Air Liquide.

Valeo ensured a good atmosphere in the auto sector and made it with 2.9 percent for daily winners. Particularly attracted to France title, then Peugeot-Citroen and Renault down 4.6 percent to 2.1 percent. Valeo jumped 8.6 percent to 37.61 euros. The auto sector rose by 2.9 percent, capital goods manufacturer to an average of 1.5 percent. A profit forecast of flat ones because Siemens does not bother: With 5.2 to 5.4 billion euros is the expectation of profit for the current year, well below the previously avisierten 6 billion euros. The industrial group with the new estimate, however, was reached only when the forecasts of analysts were already - had this not a surprise effect.

Tractors and fertilizer run in the U.S.

Better than expected seems to be the agricultural industry to run: So Fiat jumped from 7 percent to 8.31 Industrial €. "By increasing the positive statements of Mosaic to the increase in farm income in the U.S., the sales probabilities for agricultural machinery," said one trader. The fertilizer maker Mosaic in the United States had expressed very positive about the outlook for the U.S. agricultural industry. Fiat Industrial stored appropriately so, good numbers of its U.S. branch CNH Global.

The division was formed from the merger of the agricultural machinery manufacturer, Fiat, Case and New Holland and is one of the leading tractor manufacturers in the world. CNH in the first quarter net profits almost double, and reported 22 percent more sales. In addition, they also see the market for farm and construction machinery positive in the current year. The German fertilizer maker K + S benefited and grew 4.4 percent.

World Economy

Strong corporate figures from Europe and the U.S. worked for the Euro Stoxx 50 upward.

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