Sun, Feb 04, 2007 - Page 10 News List

European bourses move up on healthy corporate reports

AFP , LONDON

European stock exchanges moved higher on Friday on corporate news and following a US job creation report that fell short of expectations but suggested that US economic momentum would maintain a healthy pace.

In London the FTSE 100 index added 0.46 percent to end the week at 6,310.90 points, while in Paris the CAC 40 rose 0.27 percent to close at 5,677.30. The Frankfurt DAX gained 0.50 percent to finish at 6,885.76.

The Euro STOXX 50 index of leading eurozone issues gained 0.41 percent to reach 4,228.39.

US stocks traded mixed as investors digested a strong two-day rally and the employment data that suggested the economy was moving ahead with only modest inflation pressures.

Peter Morici, an economist at the University of Maryland, said the report highlights "moderate growth [that] will be good for the stock market."

Dick Green at Briefing.com added: "The payroll numbers reveal a very strong labor market that will fuel a continued strong economy in 2007."

In London supermarket chain Sainsbury shot up 13.87 percent as investment funds CVC, KKR and Blackstone said they were mulling a takeover offer.

Elsewhere in the sector Morrison rose 5.90 percent, while Tesco added 3.69 percent.

Royal Dutch Shell fell 1.84 percent after several analysts lowered their recommendations on the group, which on Thursday said it foresaw lower production in the years to come.

In Paris steel tube producer Vallourec was the day's big loser, shedding 5.75 percent after predicting a slowdown in sales growth this year.

Automaker Renault fell 4.18 percent, dragged down by a decline in net earnings at Nissan in the third quarter. Renault has a 44.3 percent stake in the Japanese manufacturer.

Construction group Vinci gained 1.87 percent on better than expected sales figures for last year.

In Frankfurt energy giant E.ON jumped 3.63 percent after the withdrawal of its rival, Gas Natural of Spain, from a takeover battle for Spanish electricity company Endesa.

Elsewhere there were gains of 0.88 percent to a record 4,507.29 on the BEL 20 in Brussels, 0.24 percent to 506.78 on the AEX in Amsterdam, 0.41 percent to a record 14,631.2 on the IBEX-35 in Madrid, 0.32 percent to 42,596 on the SP/MIB in Milan and 0.46 percent to a record 9,217.87 on the Swiss Market Index.

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