Eurostoxx 50: 3,024.37 (–1.31) Frankfurt DAX: 7,371.20 (+30.92) Paris CAC: 4,101.31 (+6.17)EUROPEAN STOCKS posted a second weekly gain yesterday, as companies from Swatch to Alcatel-Lucent reported better than expected earnings and after Egypt's president stepped down.
The Stoxx 600 Europe Index gained 0.7 per cent to 287.99. The gauge reached the highest level since 2008 earlier this week.
“Earnings have been reassuring,” said Guillaume Duchesne, equity strategist at BGL BNP Paribas in Luxembourg. “There have been positive surprises. Sales have progressed. Our vision of the market is positive, without being euphoric.”
Stocks rallied after a statement on state television said Egyptian president Hosni Mubarak will resign. Earlier, Egyptians streamed out of prayers vowing to topple Mubarak after he defied calls for his resignation for the second time this month.
Breguet and Omega Swatch jumped 8.5 per cent. The watchmaker on February 8th reported an estimate beating 42 per cent gain in 2010 profit as it sold more Breguet and Omega watches in Asia.
Alcatel, France’s largest telecommunications equipment maker, rose 35 per cent.
ArcelorMittal advanced 5 per cent. The world’s biggest steelmaker on February 8th reported 2010 earnings that beat analyst estimates and forecast a stronger year ahead as demand recovers.
Nokia sank 14 per cent.
L’Oreal slipped 3.4 per cent.
Air France-KLM sank 5.4 per cent. Europe’s largest airline reported an unexpected quarterly loss of €46 million ($63 million) and cut its full-year forecast after French strikes and weather disruptions caused it to cancel flights.
Credit Suisse lost 5.4 per cent. Switzerland’s second-largest bank reported fourth-quarter net income that missed analyst estimates.
Deutsche Boerse climbed 8.4 per cent. The company said it is in advanced talks to buy NYSE Euronext in an all-stock transaction.
London Stock Exchange gained 6.3 per cent after the company confirmed it will merge with TMX.
UBS gained 5.4 per cent as Switzerland’s biggest bank attracted net new money from wealthy clients for a second straight period even as fourth-quarter net income missed estimates. – (Bloomberg)
