FTSE, DAX and CAC were covered with Icelandic volcano ash

New challenges for Europe's economy

In brief: Monday, May 17, the major stock markets in Europe have shown mixed dynamics with a predominance of negative component. Despite the fact that investors continue to worry about the situation related to the debt problems of the euro area, some stocks still managed to regain some positions lost in the two previous sessions.

Markets in Europe were covered with Icelandic volcano ash. Europe can not get out of the crisis … This circumstance is mainly due to the fact that the bidders have decided to heed the opinion of analysts on the overvalued securities of the European region. In particular, Credit Suisse Group analysts advised clients to buy shares of European companies, and representatives of Morgan Stanley established rating better than the market “for most European markets. In turn, UBS analysts urged investors to purchase shares of German companies.

However, the positive recommendations of the experts was not enough to overcome the pessimism rooted in the problems of Greece and are proliferating throughout the Eurozone. As a result of trading a key index of the UK FTSE down 100 at 0,01%, French CAC 40 index weakened by 0.47%, while the German DAX went to plus on 0,17%. Regional index STXE 600 was easier to 0,18%, closing at 248.02 points. Quotes Italian bank Banco Popolare rose by 7,58% due to reporting, exceeded the average expectations of analysts. Thus, the net profit in the first quarter totaled 77.1 million euros compared with the projected 45.8 million euros. Further support for the bank’s securities had increasing their rating to “good market” to “better market,” analysts of Credit Suisse Group. Leader of growth among companies of telecommunication sector has become Telefonica, adding it to your asset 1,51% after Citigroup analyst upgraded the rating of its shares to “hold” to “buy”. In turn, quotes, Vodafone Group left in plus on 1,38%, helped by good performance of Vodafone Egypt Telecommunications and the planned 50% increase in dividend-ing Vodacom Group on the basis of 2011 fiscal year. The largest management company, whose shares are traded on the Stock Exchange, Man Group has receded during the session at 8.85%. Today it became known that representatives of Man Group agreed to buy British hedge fund GLG Partners for $ 1.6 billion. Paper Germany’s largest construction company Hochtief became easier to 7.65% due to less significant than expected volume of orders, as well as reducing the forecasts of sales in the market in Australia. A cloud of volcanic dust from Ireland, re-enveloping the airspace over Europe, forced to close terminals in Northern Ireland, the Netherlands and the UK. The result, shares of Ryanair Holdings and British Airways sank 3.46% and 1.18% respectively.

Ukrainian Globalist
2010-05-17 19:58, Economics.

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