ADVFN Evening Euro Markets Bulletin - October 28th 2010

By ADVFN.com
ADVFN offer FREE streaming stocks and shares data form around the world. SEE

London Market Reports
Footsie looks to end losing streak

Market Movers
techMARK 1,768.90 +0.60%
FTSE 100 5,682.98 +0.65%
FTSE 250 10,872.88 +0.42%

Stocks have taken their cue from Wall Street, which recovered in late trade Wednesday, and are helped by a fight back at ARM Holdings and buoyant miners.

Royal Dutch Shell grew earnings by 18% in the third quarter compared with a year ago, while the figure excluding big one-off items rocketed 88% to $4.93bn, well ahead of market forecasts. Earnings, on a current cost of supplies (CCS) basis were $3.5bn, up from $3bn a year ago, though that was well below the $4.5bn it made in the second quarter.

Mining firm Kazakhmys hailed another solid quarter of copper production and said it remains on course to hit its full year output target. Copper cathode production for the first nine months of 2010 totalled 239 kilotonnes (kt). The company has set itself a target of producing at least 300kt during the course of 2010.

Other miners, Rio Tinto, BHP Billiton and Xstrata are in the blue.

Third quarter sales for drugs giant AstraZeneca were much as the market had anticipated, with competition from generic alternatives to its drugs denting sales in the US. Revenue in the third quarter eased 4%, or 2% using constant exchange rates (CER), to $7,898m from $8,200m a year earlier. Underlying profit before tax dipped 10% to $3,083m from $3,437m.

The champagne corks are popping at oil giant BG after it began producing oil from its 100,000 barrel a day facility on the lucrative Tupi field in the Santos Basin, offshore Brazil. BG, which has a 25% interest in block BM-S-11, says the first permanent floating production, storage and offloading (FPSO) vessel in the concession - Cidade de Angra dos Reis - is initially connected to well RJS-660, or Tupi-P1. As well as the oil, it’s expected to produce up to 177 million standard cubic feet of gas every day.

Premier Oil has been awarded five new licences in the 26th UK Licensing Round, including several blocks close to its existing interests in the Central North Sea. The company, which already has a 35% interest in the potentially huge Catcher field, said the wins, announced yesterday by the Department of Energy and Climate Change, include two operated licences.

Revenue jumped 30% at Aggreko on a constant currency basis during the third quarter, and the temporary power and temperature control expert now thinks full-year profit will beat consensus forecasts. The football World Cup in South Africa this summer, a heatwave in America and increase in prices pushed sales up 34% at the Local business in the three months to September 30. It predicts full-year profits of around £300m, better than the current consensus of £290m.

Hovis bread owner Premier Foods said total group sales fell 4.2% in the three months to 30 September after a reduction in non-branded sales. "We still aim to make progress in the full year but the slowdown in Q3 means this is likely to be more modest and is, as always, dependent on Christmas trading," said Branston Pickle and Bisto gravy owner.

Asia-focused oil and gas firm Salamander Energy said drilling has started on its Marindan-1 exploration well in Indonesia. The Marindan-1 well, located in the Kutai production share contract (PSC), East Kalimantan, will be drilled to a depth of around 3,265 metres true vertical depth sub-sea. It is targeting gas in multiple stacked sequences comprising both sandstone and carbonate reservoirs of late Miocene to early Pliocene age.


--------------------------------------------------------------------------------

Sippdeal
The UK's first online SIPP and a tax efficient, low-cost, award winning way to manage your pension fund. With online dealing fixed at £9.95, no establishment charge, no SIPP annual administration charge, no contribution charge and free transfers in – Sippdeal could be ideal for you. Click here


--------------------------------------------------------------------------------

UK Diary of Event
INTERIMS
B.P. Marsh & Partners, Hansen Transmissions International NV, Noida Toll Bridge Company Ltd. GDR, Rugby Estates

INTERIM DIVIDEND PAYMENT DATE
GVC Holdings, Henry Boot, International Power, InterQuest Group, Lighthouse Group, Martin Currie Portfolio Inv Trust, TT Electronics

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Climate Indicator (EU) (10:00)
Continuing Claims (US) (13:30)
Economic Sentiment Indicator (EU) (10:00)
Initial Jobless Claims (US) (13:30)
PMI Retail (EU) (09:00)
PMI Retail (GER) (08:55)
Unemployment Rate (GER) (08:55)

Q2
Noida Toll Bridge Company Ltd. GDR

Q3
AstraZeneca, Axis-Shield, Banco Santander SA, Royal Dutch Shell 'A', Royal Dutch Shell 'B'

GMS
Ultimate Finance Group

FINALS
Mouchel Group, Namakwa Diamonds Ltd.

IMSS
Aggreko, Arriva, Axis-Shield, Pace, Premier Foods, Promethean World, RPS Group, TT Electronics

EGMS
Air China Ltd.

AGMS
Alumasc Group, Argos Resources Ltd., Ashmore Group, Cubus Lux, Go-Ahead Group, Murgitroyd Group, Ransom(William) & Son

UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trends Surveys (11:00)
CBI Industrial Trends Surveys (11:00)
GFK Consumer Confidence (00:01)
PMI Retail (09:30)

FINAL DIVIDEND PAYMENT DATE
Oxford Instruments


--------------------------------------------------------------------------------

Claim your FREE report: 10 rules for maximising your penny share profits
Receive the stock market wisdom of a top-level penny share expert
Your essential guide to playing the small caps market
Simply Click Here Now


--------------------------------------------------------------------------------

European Market Reports
Spain out of step as markets rise

Most of the major European indices have started on the front foot, encouraged by the late surge in US markets last night and some forecast busting earnings announcements.

Spain’s IBEX 35 index is a dissenter, sliding 9 points to 10,690, after banking giant Santander indicated it would not hit 2010 earnings targets because it has taken a €472m hit on bad loans this year rather than next.

Third quarter profits at the lender tumbled to €1.64bn from €2.22bn in the third quarter of 2009.

Things are looking brighter in France, where the CAC index is up 19 at 3,835.

France Telecom leads the French market higher after third quarter earnings before interest, tax, depreciation and amortisation rose 1.9% from a year earlier to €4.26bn, versus market expectations of €4.14bn. The telecoms company said its growth was driven by expansion in Africa and the Middle East.

Hot on France Telecom’s heels is drugs maker Sanofi-Aventis which is higher after it lifted profits guidance for the year.

Design software developer Dassault Systemes is wanted after third quarter net income jumped 44% from a year ago, beating market expectations and prompting the company to lift full year earnings guidance.

The Swiss market index is up 25 points at 6,504, though power-transmission systems maker ABB is proving a drag, even though third quarter profit of $774m beat analysts’ estimates of $668m.

Germany’s DAX is 28 points firmer at 6,596.

Chemicals firm BASF cheered the market by announcing it will “give shareholders a little treat” and resume dividend payments after it unveiled third quarter net income of €1.25bn, compared to €237m a year earlier.

Drugs leviathan Bayer lifted its third quarter net income to €280m from €249m in the corresponding quarter of last year, but this was well short of market consensus of $494m. The company confirmed its full year earnings guidance.

Deutsche Lufthansa continued the recent run of airlines reporting improved fortunes. Third quarter profit tripled to €628m from €209m in the third quarter of 2009.

CAC 40 - Risers
France Telecom (FTE) € 16.98 +1.80%
Sanofi-Aventis (SAN) € 50.41 +1.78%
ST Microelectronics (STM) € 6.23 +1.40%
Alcatel-Lucent (ALU) € 2.58 +1.26%
Schneider Electric (SU) € 102.15 +1.04%
Cap Gemini (CAP) € 36.76 +0.99%
GDF Suez (GSZ) € 28.06 +0.92%
Dexia (DEXB) € 3.22 +0.88%
Carrefour (CA) € 38.89 +0.76%
LVMH (MC) € 112.70 +0.67%

CAC 40 - Fallers
Renault (RNO) € 39.06 -3.83%
Alstom (ALO) € 36.19 -2.95%
ArcelorMittal SA (MT) € 23.28 -1.13%
Technip (TEC) € 59.79 -0.81%
Michelin (ML) € 57.54 -0.43%
EADS (EAD) € 18.31 -0.41%
EDF (EDF) € 32.47 -0.40%
Essilor International (EI) € 48.02 -0.22%
Peugeot (UG) € 28.70 -0.19%
Societe Generale (GLE) € 43.20 -0.16%


--------------------------------------------------------------------------------

PeerTV IPO Available
PeerTV enables internet TV & content service providers, to deliver diverse and highly personalised content through live streamed TV and Video on Demand services anywhere in the World via the internet. For more information about this Initial Public Offer visit, CLICK HERE


--------------------------------------------------------------------------------

US Market Reports
Dow picks up late

Wall Street rallied near the close after a weak start due to nervousness about the Federal Reserve’s decision on quantitative easing (QE) next week, US gross domestic product data on Friday and also next Tuesday’s mid-term elections.

The Dow Jones industrial average fell 43 to 11,126. The S&P 500 fell 3 points at 1,182 though Nasdaq added 5 at 2,503.

Hopes of an early resumption of QE took a knock from better than expected US durable goods orders in September.

New orders for durable goods rose 3.3% to $199.2bn, well in excess of market expectations of a 2% rise, as orders for civilian aircraft more than doubled from the previous month. August’s 1.5% decline was revised up to a 1% fall.

Excluding transport, however, orders were down 0.8% last month compared with forecasts of a 0.5% gain.

US new home sales data for September also proved to be better than expected. Sales of new homes rose 6.6% to a seasonally adjusted annualised rate of 307,000, slightly above economists’ forecasts of 300,000.

The better than expected data adds weight to a report on QE in the Wall Street Journal which suggests the Fed will only make a few hundred billion dollars available rather than the $2trn of aid used during the credit crunch.

In company news, consumer goods giant Procter & Gamble’s quarterly earnings of $1.02 a share were down 7% but better than expected, as were cable provider Comcast’s at 30c a share, although that was down from 33c a year ago.

International Paper’s third-quarter earnings of 91c a share was well above the 79c predicted, while sales of $6.72bn compared with estimates of $6.55bn.

Telecoms giant Sprint reported a bigger than forecast slip in earnings to 30c a share but computer networking equipment maker Broadcom cheered the market with third quarter sales that were ahead of expectations. The company said it expects revenue in the fourth quarter to be in the range of $1.8bn – 1.9bn, at least equal or slightly above the third quarter performance.

Computer components maker Molex fell back sharply after its third quarter results came up short of market expectations. Net income of $75.1m on net revenue of $897.7m was an improvement on last year’s loss of $15.1m on sales of $674.0m, but not enough of an upturn for the market’s liking.

In M&A news, The Carlyle Group is buying telecoms equipment company CommScope for about $3.9bn.

S&P 500 - Risers
Broadcom Corp. (BRCM) $40.64 +9.18%
DeVry Inc. (DV) $45.69 +6.90%
ProLogis (PLD) $13.44 +6.41%
Life Technologies Corp. (LIFE) $50.69 +6.07%

S&P 500 - Fallers
Sprint Nxtel Corp. (S) $4.30 -9.85%
Molex Inc. (MOLX) $20.80 -7.76%
Unitedhealth Group Inc. (UNH) $35.92 -4.39%
Abercrombie & Fitch Co. (ANF) $42.97 -4.17%

Dow Jones I.A - Risers
Bank of America Corp. (BAC) $11.54 +2.12%
American Express Co. (AXP) $40.68 +1.45%
JP Morgan Chase & Co. (JPM) $37.54 +0.91%
Intel Corp. (INTC) $20.21 +0.85%

Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $36.46 -1.65%
McDonald's Corp. (MCD) $77.48 -1.63%
Hewlett-Packard Co. (HPQ) $42.37 -1.35%
Alcoa Inc. (AA) $12.70 -1.32%


--------------------------------------------------------------------------------

Open a Selftrade Dealing account...
...and pay a flat £12.50 per trade. Deal in UK and International Equities, Funds, Bonds, Covered Warrants and Listed CFDs. Instant account funding via debit card. No dealing fee on fund purchases. Annual Management Fee of £35 + VAT. Click here


--------------------------------------------------------------------------------

Thursday newspaper round-up
The coalition’s deficit-cutting plans will deliver a “material” hit to British economic growth over the next two years, a leading Bank of England policymaker has warned.

In an interview with The Times, Adam Posen, a member of the Monetary Policy Committee, said that the tax increases and spending cuts George Osborne opted for would have a particularly large impact on the economy’s performance, imposing a “material down-drag” on both growth and inflation.

Kazakhstan is preparing to hit one of BG Group's biggest gas projects with $1.2bn (£760m) in back taxes, as the nation's government tries to wrestle itself a stake in the key field. Karachaganak, the prize gas project owned by BG Group, Italy's ENI and America's Chevron, is the only major field in the Eurasian country where the state has no influence, the Telegraph writes.

The simmering crisis on the eurozone fringes has erupted again as the full impact of debt deflation hits home, testing political solaridity and raising fresh doubts about the workability of Europe’s austerity policies. Hopes of a budget deal in Portugal collapsed after marathon talks between the minority government of socialist premier Jose Socrates and conservative leaders ended in acrimony. Finance minister Fernando Texeira dos Santos said failure to agree on budget cuts will "plunge the country into a very deep financial crisis", reports the Telegraph.

Low earners will be exempt from plans to put pressure on almost all workers to save for retirement after concessions were outlined by ministers yesterday. Seasonal workers and other employees leaving jobs within weeks of arriving will also be excluded as a result of the introduction of a three-month probation period. However, there is no reprieve for the smallest businesses, which had lobbied to be excluded from the looming pensions reform, according to the Times.

Speciality retail Group, the company behind the Suits You menswear chain, has collapsed into administration just eight months after a controversial insolvency procedure, leaving 350 jobs hanging in the balance, the Independent reports.

Vodafone’s flagship Oxford Street store was forced to close on Wednesday after protesters blockaded the entrance, accusing the company of failing to pay £6bn in taxes. The FT says around 30 protesters sat down in the store, while 15 stood outside holding banners that read “Pay your taxes, save the welfare state” and chanting: “If you want to sell phones, you should pay your taxes.”

Guy Hands, one of Britain’s best-known venture capitalists, is a contrarian and egotist, the Terra Firma founder’s friend and legal adversary David Wormsley has told a New York court, which is hearing the private equity firm’s $7 billion fraud case against Citigroup, the Times writes

The internet is worth £100bn to the British economy, making a larger contribution than transport or utilities, as the country becomes "a nation of digital shopkeepers". The internet accounts for an estimated 7.2 per cent of gross domestic product and this could rise to 15 per cent within five years, according to global research by the respected Boston Consulting Group (BCG), writes the Independent.