Frankfurt’s DAX index rose marginally by 0.37% or 23.42 points to settle at 6,331.33 points while FTSE index was tripped by grim spending outlook in UK. FTSE ended at 5,386.16 or down by 10.32 points (-0.19%).
DAX’s advance owed to the positive US data as ISM for service sector edged up from 53.8 to 54.3, while ADP report on private hiring in US showed an increase of 42,000 jobs in July after a revised reading of +19,000 in June. The result beat the consensus of 30,000. Bayer AG, BMW, and BASF were the top gainers on Wednesday with gains of 1.31%, 1.20%, and 1.20%, respectively.
Allianz, Europe’s largest insurer by gross premiums and market capitalization is seen to book a 39% decline in net profit in 2Q10. The drop was attributed to lower income on investment and higher costs due to earthquakes and other natural disasters. Analysts forecast net profit to have dropped to EUR1.5 billion from EUR1.87 billion (yoy), operating profit to have risen 2.9% to EUR1.84 billion from EUR1.79 billion, and total revenue to have increased to EUR23.24 billion from EUR22.17 billion. Allianz itself had previously expected an operating profit around EUR7.2 billion for 2010, plus or minus EUR500 million.
One of the top gainers in Frankfurt, Bayer AG reported that its Xarelto drug was deemed as effective as the standard therapy of blood clots therapy in the lungs and legs. The trial has reached late-stage of the clinical trial. Bayer ended up 1.31% at 46.57 euros.
In London, FTSE index shed 0.2% to 5,386.16 as the market worried about the prospect of the retailer sector due to possible cooling in consumer demand. Retailer like Marks & Spencer was down 2.9%. On the positive note, BP announced that the Macondo well has finally reached a static condition, stepping further into completely stopping the oil spill from entering the Gulf of Mexico. At Bernstein, BP was initiated with a Market Perform with target set at $40 (US-listed). BP shares went up 1.4% on Wednesday.
Barclays Plc is expected to report 1H10 net income of 2.14 billion pounds on Thursday, while consumer goods giant Unilever is seen to report its 2Q net income of 1.08 billion euros according to Bloomberg’s poll of analysts.
On the economy news, PM David Cameron’s plan to reduce budget significantly has prompted the BOE’s governor Mervyn King to set aside his inflation target to protect the UK’s economy. Currently, the rates stand at 0.5% while inflation has been above 3% since March and was at 3.2% in June. King said earlier that rates is likely to stay above the bank’s target “for much of next year”.
DAX’s advance owed to the positive US data as ISM for service sector edged up from 53.8 to 54.3, while ADP report on private hiring in US showed an increase of 42,000 jobs in July after a revised reading of +19,000 in June. The result beat the consensus of 30,000. Bayer AG, BMW, and BASF were the top gainers on Wednesday with gains of 1.31%, 1.20%, and 1.20%, respectively.
Allianz, Europe’s largest insurer by gross premiums and market capitalization is seen to book a 39% decline in net profit in 2Q10. The drop was attributed to lower income on investment and higher costs due to earthquakes and other natural disasters. Analysts forecast net profit to have dropped to EUR1.5 billion from EUR1.87 billion (yoy), operating profit to have risen 2.9% to EUR1.84 billion from EUR1.79 billion, and total revenue to have increased to EUR23.24 billion from EUR22.17 billion. Allianz itself had previously expected an operating profit around EUR7.2 billion for 2010, plus or minus EUR500 million.
One of the top gainers in Frankfurt, Bayer AG reported that its Xarelto drug was deemed as effective as the standard therapy of blood clots therapy in the lungs and legs. The trial has reached late-stage of the clinical trial. Bayer ended up 1.31% at 46.57 euros.
In London, FTSE index shed 0.2% to 5,386.16 as the market worried about the prospect of the retailer sector due to possible cooling in consumer demand. Retailer like Marks & Spencer was down 2.9%. On the positive note, BP announced that the Macondo well has finally reached a static condition, stepping further into completely stopping the oil spill from entering the Gulf of Mexico. At Bernstein, BP was initiated with a Market Perform with target set at $40 (US-listed). BP shares went up 1.4% on Wednesday.
Barclays Plc is expected to report 1H10 net income of 2.14 billion pounds on Thursday, while consumer goods giant Unilever is seen to report its 2Q net income of 1.08 billion euros according to Bloomberg’s poll of analysts.
On the economy news, PM David Cameron’s plan to reduce budget significantly has prompted the BOE’s governor Mervyn King to set aside his inflation target to protect the UK’s economy. Currently, the rates stand at 0.5% while inflation has been above 3% since March and was at 3.2% in June. King said earlier that rates is likely to stay above the bank’s target “for much of next year”.
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