European Indexes Climb
MARKETSCOPE: World equity prices rose on Wednesday, as investors hoped for economic revival in Europe.
In London, the Financial Times-Stock Exchange 100 index managed to gain 6.70 to 5365.90, as U.S. productivity was revised down and labor costs up. Reports that the U.K. August shop price index rose 0.19% and U.K. house prices jumped in August had little impact on the market. Among major companies, BAE rose as its first-half net income increased more than fourfold. Hays Plc rose in value as Morgan Stanley reiterated its "overweight" recommendation on the stock. Associated British Ports Holdings rose as its first-half profit more than tripled.
Frankfurt's DAX Index rose 19.86 to 4988.14, as the German economy continued to show revival signs with its July industrial production jumping 1.2%, more than the 0.8% expected. Among major companies listed on German stock exchanges, Bayer rose as crude oil prices fell, reducing the company's expenses at least temporarily. Volkswagen also benefited from lower oil prices, with the stock's price rising as result. Commerzbank rose after Deutsche Bank raised its share-price forecast. Heidelberger Druckmaschinen fell on news that Commerzbank sold its 10% stake in the company. BMW rose as the company's sales surged 23% last month. Comdirect rose on an increased client list.
Paris' CAC 40, aided by some strong earnings reports, rose 56.10 to the 4480 level on hopes for economic revival. Among major companies, Devoteam rose after news that its first half profits rose 71%. Neopost rose after reports said that its second quarter sales rose 12%. Sword Group rose as its first half profits and sales rose. Technip rose after being selected as part of the team to build Yemen's first plant for exports of liquefied natural gas.
Asian share trading was cautious. Investors in Japan awaited a Thursday report on machinery orders, among other things. The Nikkei 225 index edged up 8.16 pts (0.06%) to 12,607.59. The market had opened higher, responding to the rally on Wall Street Tuesday, but then erased those gains. Major banking stocks fell, led by Mizuho Financial. Exporters, including Toyota Motor and Takeda Pharmaceutical, rose.
Boosted by strength in U.S. markets and lower oil prices, South Korea's KOSPI rallied 20.34 points (1.81%) to 1142.99. The country's bellwether auto maker Hyundai Motor soared 6.9% on expectations of rising sales in Korea and abroad.