Market Analysis

European stocks rose on Tuesday the second day in a row - on 0,3-1%, reports Bloomberg.

Dow Jones Stoxx 600 rose for the results of the auctions on 0,8% - to 260.26 points, the maximum value on the closure of the market since October 2008.

support of the European stock market has provided information about whether the U.S. Kraft Foods improved the offer to purchase Cadbury Plc to 840 pence per share, evaluate a company, therefore, to 11.9 billion pounds ($ 19.7 billion).

new proposal Kraft 9% higher than the previous, and the Board of Directors of Cadbury recommended that shareholders accept an improved offer.

cost

Cadbury shares rose 3.6%.

Paper Burberry, one of the world"s leading manufacturers of goods luxury, went up by 8,3%. The company increased its turnover in the third fiscal quarter to 15% of its total revenue grew to 380 million pounds ($ 624 million), while analysts expect a rise to 342.75 million pounds.

"We are confident in continuing the positive trend in the first half of 2010, - said Frank Nicholas of Natixis Asset Management in Paris. - In the current quarter are possible pleasant surprises in the field of corporate accountability."

Share prices of pharmaceutical companies jumped on Tuesday on the background of increasing investor interest in companies whose earnings are least dependent on economic growth. Podyndeks Stoxx 600, a calculation which includes the papers of this sector, rose by 1,6%, which was the largest increases among 19 industry groups of the indicator.

Papers

Sanofi-Aventis have risen in price on 1,8%, GlaxoSmithKline - to 1,9%, AstraZeneca - by 1,7%.

negative for the market was the message of the fall of the index of confidence of investors and analysts to the economy of Germany, calculated by the research institute ZEW, in January of the fourth month in a row. The value index fell to 47.2 points from 50.4 points in December, while analysts expected to reduce it to 50 points.

In addition, inflation in Britain accelerated to a record level of December. Consumer prices have risen by 2,9% year on year - is the maximum since the beginning of the tracking rate for modern methods in 1997.

"Data on the high inflation in the UK have raised expectations that the Bank of England will consider raising interest rates", - notes Dolmen Securities strategist Stephen Taylor.

Share prices of European banks fell on the results of the auctions on Tuesday on disappointing U.S. reporting Citigroup Inc. One of the largest banks in the U.S. recorded in the fourth quarter 2009 net loss of $ 7.6 billion, or 33 cents a share, in connection with the cost of debt to the state.

Citigroup Loss from continuing operations totaled 34 cents per share, while analysts on average predicted the rate of 30 cents per share.

Against this backdrop, shares of Societe Generale fell 1,4%, Lloyds - by 1,7%.

price of securities of engineering group Alstom fell by 2,5%. The company"s revenues in the third fiscal quab82rter rose to 4.69 billion euros, but fell short of the average forecast of experts in euro 4.81 billion.

12 of the 18 major stock indexes in Western Europe rose on Tuesday.

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