Market Analysis

 

Friday, December 18, the major stock markets of the European region have shown negative dynamics, despite the number of positive factors. IFO index of business optimism in Germany was better than analysts" expectations, as the eurozone"s trade balance in October was significantly higher than predictive value. Optimistic statements came from the second largest in the world software developer Oracle, which reported that American consumers are once again increased spending on technology.

IFO index of business optimism in Germany amounted to 94.7 points in December, while analysts predicted 94.5 points. The trade balance of the euro area rose in October to 8.8 billion euros against the expected value of the target of 5.8 billion euros.

An unpleasant surprise gave the ECB, said that the Bank of the European region is likely to require cancellation of an additional amount of funds that carried away the indices in the red zone.

 
As a result of trading a key index of the UK FTSE 100 fell by 0,4%, French CAC 40 index decreased by 0,95%, while the German DAX lowered from its asset 0,23%. Regional index Dow Stoxx 600 has become easier to 0,36% and closed at the level of 246.29 points.

Shares of technology companies enjoyed a good demand during the session after a U.S. corporation Oracle reported on higher than expected profits, the Canadian smartphone manufacturer Research in Motion has raised forecasts for sales and profits for the current quarter. As a result, the paper SAP and ASML Holding left in plus on 1,95% and 0,89% respectively.

Quotes of the second-largest European semiconductor manufacturer Infineon Technologies have advanced to 4.07% by raising the rating on its shares by analysts Commerzbank.

Another favorite was the French trading company Iliad, whose paper built up to 3,67%. Today, 18 December, the regulator in telecommunications (Autorite de Regulation des Communications Electroniques et des Postes) presented Illiad fourth in France licensed to conduct business as a seller of mobile phones.

Representatives of the ECB said that banks in the region may need to write off an additional 187 billion euros ($ 268 billion) in loans to companies as the real estate industry, which has affected the sale of securities in the financial sector. For example, Lloyds Banking Group, Barclays and Commerzbank lost 4.7% at the auction, 3,51% and 2,8% of market capitalization.

Leading French bank by the number of offices of Credit Agricole has lowered from its asset 7,13% reduction against the recommendations of its stock analysts, Bank of America - Merrill Lynch.

Once the value of gold, nickel and zinc rose in London trading, quotes the world"s largest mining company BHP Billiton climbed 1.07%.

British oil company BP has progressed during the session at 0.38%. Analysts at Goldman Sachs upgraded the rating of shares of BP with "neutral" to "buy".

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