** EUROPE: CLOSING WRAP **
| ** EUROPEAN EQUITIES ** | ||||||
| Stoxx 600 1.16%; FTSE 1.12%; DAX 1.78%; CAC 1.64%; AEX 1.36% | ||||||
| | Industrial 1.23%| Financials 1.22%| ConsDisc 0.53%| Telecom 0.74%| Utilities 1.29%| Technology 1.03%| ConsStaples 0.29%| Materials 2.86%| Healthcare 1.05%| Energy 1.93% | ||||||
- European markets pushed towards new highs on the back of take-over activity in the materials sector. Mittal Steel announced to bid EUR 18.6b for Arcelor seeking to create a company that would control 10% of the world’s steel. Utilities and Telecoms lagged on concern over bond yields.
- On a stock specific note shares of P&O rallied after Dubai Ports increased its bid for the company, Porsche rallied on better than expected H1 numbers, Casino was weak after posting a warning of 11% in operating profit
- Energy stocks bounced on stronger crude oil. Concerns regarding Iran’s nuclear program re-appeared on stage as well as the Saudi Oil Minister stating that world supply & demand is balanced and geopolitical factors will prevent a drop in price.
- Bonds reversed early morning losses after U.S. GDP numbers hit the tapes. These showed that the US economy grew less than forecasted. After the release of the new home sales report, coming in better than expected, bonds ended in negative territory again.
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