European Market Updates
11/6/2009 2:40 PM ET
(RTTNews) -
The European markets rose for the third day on Friday, as a rally among banking and mining stocks overshadowed a report showing the highest U.S. unemployment rate in more than 26 years.
The U.S. Labor Department said that non-farm payroll employment fell by 190,000 jobs in October following a revised decrease of 219,000 jobs in September. Economists had expected a decrease of about 175,000 jobs compared to the loss of 263,000 jobs originally reported for the previous month.
The report also showed that the unemployment rate jumped to 10.2% in October from an unrevised 9.8% in September. The unemployment rate had been expected to show a more modest increase to 9.9%. The bigger than expected increase lifted the unemployment rate to its highest level since a matching rate in April of 1983.
Crude for December delivery fell $2.77 to $76.85 a barrel on the New York Mercantile Exchange, by the time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 0.20% higher at 992.53 points, while the narrower DJ Stoxx 50 index rose 0.20% to 2,439.12 points.
Around Europe, the U.K.'s FTSE 100 index rose 0.33% to 5,142.72 and Germany's DAX index advanced 0.13% to 5,488.25, while France's CAC 40 index declined 0.04% to 3,707.29.
Banking stocks were among the top gainers. Royal Bank of Scotland, Britain's largest government-controlled bank, climbed 6.1% after the company reported a 55% rise in third quarter operating profit and said lending to small-and-medium sized companies increased 5%. The company reported a net loss of £1.8 billion pound for the third quarter.
HSBC, Europe's largest bank, rose 1.8%, while BNP Paribas, France's biggest lender, surged up 1.5% and Commerzbank, Germany's second largest bank, added 1.2%.
Among miners, Anglo American, the world's second biggest miner, climbed 1.8%, while Rio Tinto, the third biggest, rose 1.1% and copper miner Antofagasta surged up 1.6%.
Hannover Re, Germany's second biggest reinsurer, rose 3.1% after the company reported third quarter profit that beat analysts' estimate.
British Airways, Europe's third largest airline, jumped 6.7% after the company posted a better-than-expected pretax loss for the first-half.
Other airline stocks also gained, as crude oil prices tumbled. Air France-KLM, Europe's largest airline, rose 1.2% and Lufthansa, the second largest, surged up 3%.
by RTT Staff Writer
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