Daily Comments
Germany: China as a source of inspiration for investors
02.09.2010 9:19:00 Daria Bulanova, Junior analyst, Global Markets (Finam)
On Wednesday, September 1, Germany’s benchmarks closed with green on the screen. Investors were inspired by a turnaround in the China Manufacturing PMI which rebounded from levels seen last month and increased in August.
It should be noted that a 0.3% m-o-m drop in German retail sales in July vs. the projected 0.5% uptick did not put pressure on indexes. In the meantime, Germany’s Manufacturing PMI remained flat in August at 58.2 which is in line with expectations.
By 16:00 GMT, Brent crude oil futures surged 2.593% to USD 76.575/bbl, while copper futures also trended 2.76% higher, to USD 346.300/lb. The euro firmed 0.969% against the US dollar and traded at 1.281.
By the final bell, Germany’s benchmark DAX Index gained 2.68% and closed at 6,083.90, while the technology-focused gauge TecDAX Performance Index added 2.34% to its market value and settled at 759.19.
Metro and Henkel advanced 5.35% and 3.07%, respectively, on analysts’ upgrades. Thus, Sanford C. Bernstein raised Germany’s leading retailer Metro AG to Overweight from Marketweight, while chemical producer Henkel AG saw its recommendation raised from Hold to Buy at British financial services provider Royal Bank of Scotland Group.
The stock price of Germany’s largest television company ProSiebenSat.1 Media AG surged 8.19% as French media firm Vivendi upgraded its full-year profit guidance.
Europe’s leading travel group TUI grew 5.07% on media reports the company could purchase the remaining shares of its TUI Travel unit.
Europe’s airspace giant European Aeronautic Defence & Space moved up 3.38% after Emirates unveiled its intention to spend more than USD 28 bn within the next seven years to expand the aircraft fleet, including models manufactured by Airbus SAS, a subsidiary of the European Aeronautic Defence & Space Company.
