European Markets Mostly Lower; Micro Focus Surges On Deal
Paris (Sept 15) The European markets are mostly lower on Monday, after weak data emerged out of China . Sentiment was also impacted by apprehension ahead of the Scottish independence referendum slated for Thursday.
On the economic front, the Eurozone trade surplus decreased for the second straight month in July, Eurostat reported. The trade surplus fell unexpectedly to a seasonally adjusted 12.2 billion euros from 13.8 billion euros in June. The surplus was forecast to rise to 15.5 billion euros .
Swiss producer and import prices declined for the eleventh consecutive month in August, data from the Federal Statistical Office showed. Producer and import prices fell 1.2% year-on-year in August after decreasing 0.8% in July. The index has been falling since last October.
The Organization for Economic Cooperation and Development lowered its growth outlook for major developed nations and urged the European Central Bank to take further steps to boost demand.
In its interim economic assessment, the OECD said a moderate expansion is underway in most major advanced and emerging economies, but growth remains weak in the euro area.
Chinese industrial production and retail sales increased at slower than expected rates in August, data from the National Bureau of Statistics showed Saturday. Industrial production rose 6.9% year-over-year in August following a 9% rise in July. This was slower than the 8.8% growth estimated by economists.
A separate report showed that Chinese retail sales expanded 11.9% year-over-year in August, which was slower than the 12.2% increase in July. This was also slower than the 12.1% increase expected by economists.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.08%, while the Stoxx Europe 50 index, which includes some major UK companies, is falling 0.02%.
The German DAX is gaining 0.09%, erasing early losses, while Switzerland's SMI is losing 0.09%. The French CAC 40 and the FTSE 100 index of the UK are falling 0.25% each.
In Frankfurt , Lufthansa is dropping around 2% after its pilots from Frankfurt Airport announced a strike on September 16 .
Deutsche Post and Infineon Technologies are falling notably. Henkel is up around 1%.
LEG Immobilien is losing 1.4%. The stock was cut to "Neutral" from "Buy" at Goldman Sachs .
Meanwhile, Adidas is rising 1.4% and Deutsche Telekom is up 1%.
TUI AG is gaining nearly 5%. The company and its unit TUI Travel have reached agreement on the terms of a recommended all-share nil-premium merger. TUI Travel is up 2% in London .
In Paris , oil field services provider Technip and oil explorer Total are falling 1.7% and 1.2%, respectively.
Alcatel Lucent and ArcelorMittal are dropping 1.1% and 1%, respectively.
Air France-KLM is declining 3.6%. The firm is operating only 48% of its flights on Monday as 60% of its pilots refrained from work on the first day of the week long strike announced by the pilots union.
LVMH and Kering are making moderate gains.
In London , Sports Direct is declining 3.1% and Babcock is falling 1.8%. Lloyds Banking is losing 1.7%.
Monitise is losing over 2% after full year loss widened.
SAB Miller is gaining 4.4% and Diageo is rising 2%.
Dutch brewer Heineken N.V. confirmed Sunday that SABMiller PLC had approached the company regarding a potential acquisition. However, Heineken, after consulting its majority shareholder, rejected the proposal and intends to remain independent. Heineken added 1.4% in Amsterdam .
Mainframe computer specialist Micro Focus International is climbing over 13% after it announced a deal to combine with privately-held peer Attachmate Group, Inc.
Swedish apparel retailer Hennes & Mauritz reported strong growth in sales for August as well as for its third quarter.
TDC , which announced the purchase of Norway cable-TV provider Get AS , is declining over 8% in Copenhagen .
US-based Danaher Corp. has entered into a definitive transaction agreement with Nobel Biocare Holding AG to acquire it in an all-cash transaction valued at about USD2.2 billion . Nobel Biocare's stock is moderately lower in Zurich .
The major Asian markets retreated, with the exception of the Chinese market, as weak data released by China triggered growth concerns and the negative performance by Wall Street stocks engendered risk aversion. The Japanese market was closed for a public holiday.
The US futures indicate a lower open on Wall Street . In the previous session, the major averages climbed off their worst levels going into the close but remained stuck in the red. The Dow fell 0.4%, the Nasdaq dropped 0.5% and the S&P 500 slid 0.6%.
Among commodities, crude for October delivery is losing USD0.68 to USD91.59 per barrel, while December gold is advancing USD4.8 to USD1236.3 a troy ounce.