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European stocks rise as Credit Suisse, banks gain; DAX up 0.33%

Published 02/14/2011, 04:58 AM
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Investing.com – European stock markets were up on Monday, as shares in the financial sector were boosted by gains in Swiss banking giant Credit Suisse, while U.S. futures indexes pointed to a mixed open on Wall Street.

During European morning trade, the EURO STOXX 50 climbed 0.07%, France’s CAC 40 added 0.17%, while Germany's DAX was up 0.33%.

Switzerland’s second largest bank Credit Suisse saw shares rally 3.57% after it sold CHF6 billion of contingent convertible bonds to its two largest shareholders, Qatar Holdings and The Olayan Group, in order to meet capital requirements under the Basel III regulations.

Shares in rival UBS rose 1.66%, Germany’s largest lender saw shares gain 1.29%, while shares of Royal Bank of Scotland added 1.64%.

Meanwhile, shares in Germany’s largest construction company Hochtief climbed 1.15% after the company said it expected to "comfortably outperform" its previous earnings forecast for 2010.     

Also Monday, shares in the world’s second largest retailer Carrefour jumped 1.36% after JP Morgan added the stock to its ‘Analyst Focus’ list.

However, shares in the world’s largest maker of mobile phones Nokia tumbled 3.04%, extending their sharp decline from the previous session when the firm announced a partnership with Microsoft.

JP Morgan downgraded the stock to ‘underweight’, saying that "the degree to which the deal [with Microsoft] is beneficial to Nokia is still unclear."   

In London, the FTSE 100 was up 0.09% as shares in international energy services company Wood Group soared 14.23% after General Electric agreed to acquire the company’s well-support division for approximately USD2.8 billion.

Meanwhile, mining giant Rio Tinto saw shares add 1.02% after the company’s chief executive said that he expected “a continued period of strong copper prices” amid declining global supplies. Rival Xstrata saw shares jump 1.29%.

However, shares in British Airways slumped 1.74% after board member Jim Forster said that he expected the company’s dispute with the airline’s cabin crew union to be a “long battle”, as the union prepared to announce a fresh strike ballot next week. 

The outlook for U.S. equity markets, meanwhile, was mixed. The Dow Jones Industrial Average futures pointed to a rise of 0.05%, S&P 500 futures indicated a drop of 0.06%, while the Nasdaq 100 futures pointed to a gain of 0.09%.

Later in the day, the euro zone was to release official data on industrial production, while in the U.S., President of the Federal Reserve Bank of New York, William Dudley was to speak at a public engagement.


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