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German Market Rises Amid M&A News, Bargain Hunting

The German market is in positive territory on Wednesday, amid bargain hunting, as some buoyant news on the M&A front helped balance the negative sentiment triggered by concerns about the future of the stimulus programs. That said, markets in Asia fell to stimulus worries, as investors globally fear that other central banks may follow the Bank of Japan's inaction.

Eurozone industrial production grew 0.4 percent in April from a month ago, largely due to higher output of capital goods and non-durable consumer goods, data from Eurostat revealed. Industrial output was forecast to remain flat after rising 0.9 percent in March.

The number of people claiming unemployment benefits in the U.K. decreased by 8,600 in May from April, the Office for National Statistics reported. The decline was sharper than the expected drop of 5,000. The claimant count rate remained unchanged at 4.5 percent as expected by economists.

The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.49 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.36 percent.

The DAX index is currently gaining 0.1 percent.

Fresenius is rising 2.4 percent and E.ON is advancing 1.6 percent.

Kabel Deutschland is climbing 8.5 percent after UK-based telecom giant Vodafone confirmed a preliminary approach for the company.

Fraport, which reported traffic data for May, is gaining 1.5 percent.

HeidelbergCement is losing around 3 percent. Morgan Stanley cut the stock to ''Equalweight'' from ''Overweight.''

Lufthansa is falling 1.8 percent after the airline was lowered to ''Reduce'' from ''Hold'' at Kepler Cheuvreux.

Elsewhere in Europe, the French CAC 40 and Switzerland's SMI are moderately higher, while the UK's FTSE 100 is up marginally.

Across Asia/Pacific, markets were lower as stimulus concerns continued. Australia's All Ordinaries dropped 0.7 percent and Japan's Nikkei 225 slid 0.2 percent. The markets in China and Hong Kong were closed for holidays.

In the U.S., futures point to a higher open on Wall Street. In the previous session, stocks ended sharply lower, as lack of further action from the Bank of Japan to curb volatility in bond markets fueled concerns that global central banks may be less forthcoming with additional monetary stimulus. The Dow fell 0.8 percent, the Nasdaq lost 1.1 percent and the S&P 500 dropped a percent.

In the commodity space, crude for July delivery is adding $0.14 to $95.52 per barrel while August gold is losing $0.2 to $1376.8 a troy ounce.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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