02/07/2003 13:19
-- European stocks gained for the first day in five. Royal Philips Electronics NV and Infineon Technologies AG led advances after computer-chip prices rose and Merrill Lynch & Co. raised its recommendation for Microsoft Corp.
Siemens AG climbed after the Financial Times Deutschland said the company reiterated its phone-network unit will have a profit in the fourth quarter. Credit Suisse Group, the second-biggest Swiss bank, advanced after a U.S. court dismissed lawsuits accusing it and other brokerages of issuing misleading research.
The Dow Jones Stoxx 50 Index climbed 44.7, or 1.9 percent, to 2385.16 as of 11:02 a.m. in London, after losing 2.3 percent yesterday. The Stoxx 600 climbed 1.7 percent, with banks accounting for about a quarter of the climb. Percentage gains were led by technology companies.
``Sooner or later companies will start to reinvest in technology, because they've been delaying their tech investment for two or three years already,'' said Johan Van Der Biest, who manages $70 million of global technology shares at Dexia Asset Management in Brussels. He's been adding to his holdings of Microsoft.
European technology companies have surged 9.8 percent this year, the fastest growing of the Stoxx 600's 18 industry groups. The Nasdaq Composite Index in the U.S., whose members include Microsoft, semiconductor maker Intel Corp. and Dell Computer Corp. has surged 23 percent.
Benchmark indexes in all 17 Western European markets advanced, with Amsterdam's AEX Index pacing gains. Germany's DAX Index climbed 2.1 percent, France's CAC added 2.3 percent and the FTSE 100 rose 1.4 percent in the U.K.
September futures on the Euro Stoxx 50 Index of companies based in the 12 countries sharing the euro advanced 1.6 percent to 2418. The index advanced 2.1 percent to 2416.65.''
Chipmakers
Philips, Europe's third-largest maker of semiconductors, added 2.4 percent to 16.44 euros after the prices of the most widely used computer memory chips rose. The spot price of the benchmark 256-megabit, 266-megahertz double-data-rate dynamic random-access memory chip advanced 1.1 percent to $3.65, its highest in three weeks, according to Dramexchange.com.
Infineon, Europe's second-biggest chipmaker, added 6.6 percent to 8.74 euros. STMicroelectronics NV, Europe's largest semiconductor company, rose 3.1 percent to 18.26 euros.
Microsoft climbed 43 cents to $26.58 in Frankfurt. Merrill Lynch raised to the stock to ``buy'' from ``neutral,'' citing ``modestly better'' personal-computer sales and expectations the software maker may boost its annual dividend to 26 cents a share from 8 cents.
Siemens, Germany's largest electronics company, rose 3.9 percent to 42.97 euros. Siemens ICN, the only unprofitable one of the Munich-based company's 13 divisions, expects a profit in the fourth quarter of the year ending September, Financial Times Deutschland reported, citing unit head Thomas Ganswindt.
Credit Suisse gained 5.3 percent to 36.60 Swiss francs after Manhattan federal court dismissed lawsuits accusing it, Merrill Lynch, Goldman Sachs Group Inc. and Morgan Stanley of misleading investors with biased research tailored to win investment banking business.
Some carmakers advanced after reporting growth in U.S. sales. Renault SA climbed 4.9 percent to 46.38 euros after Nissan Motor Co., in which it has a 44 percent stake, said U.S. sales advanced 22 percent in June from the year before.
DaimlerChrysler AG added 2.8 percent to 30.48 euros after its Mercedes Car Group reported sales rose 6.7 percent.
Pinault-Printemps-Redoute SA added 0.1 percent to 63.6 euros after Gucci Group NV said net income in the quarter ended April 30 plunged 97 percent to 1.2 million euros ($1.4 million). Pinault owns 63 percent of Gucci and has promised to pay $101.5 a share for the rest by April 2004.
The combined effects of the war in Iraq, the outbreak of severe acute respiratory syndrome and a strengthening euro had a ``devastating impact worldwide'' on the luxury goods business, Gucci Chief Executive Officer Domenico De Sole said.
Siemens AG climbed after the Financial Times Deutschland said the company reiterated its phone-network unit will have a profit in the fourth quarter. Credit Suisse Group, the second-biggest Swiss bank, advanced after a U.S. court dismissed lawsuits accusing it and other brokerages of issuing misleading research.
The Dow Jones Stoxx 50 Index climbed 44.7, or 1.9 percent, to 2385.16 as of 11:02 a.m. in London, after losing 2.3 percent yesterday. The Stoxx 600 climbed 1.7 percent, with banks accounting for about a quarter of the climb. Percentage gains were led by technology companies.
``Sooner or later companies will start to reinvest in technology, because they've been delaying their tech investment for two or three years already,'' said Johan Van Der Biest, who manages $70 million of global technology shares at Dexia Asset Management in Brussels. He's been adding to his holdings of Microsoft.
European technology companies have surged 9.8 percent this year, the fastest growing of the Stoxx 600's 18 industry groups. The Nasdaq Composite Index in the U.S., whose members include Microsoft, semiconductor maker Intel Corp. and Dell Computer Corp. has surged 23 percent.
Benchmark indexes in all 17 Western European markets advanced, with Amsterdam's AEX Index pacing gains. Germany's DAX Index climbed 2.1 percent, France's CAC added 2.3 percent and the FTSE 100 rose 1.4 percent in the U.K.
September futures on the Euro Stoxx 50 Index of companies based in the 12 countries sharing the euro advanced 1.6 percent to 2418. The index advanced 2.1 percent to 2416.65.''
Chipmakers
Philips, Europe's third-largest maker of semiconductors, added 2.4 percent to 16.44 euros after the prices of the most widely used computer memory chips rose. The spot price of the benchmark 256-megabit, 266-megahertz double-data-rate dynamic random-access memory chip advanced 1.1 percent to $3.65, its highest in three weeks, according to Dramexchange.com.
Infineon, Europe's second-biggest chipmaker, added 6.6 percent to 8.74 euros. STMicroelectronics NV, Europe's largest semiconductor company, rose 3.1 percent to 18.26 euros.
Microsoft climbed 43 cents to $26.58 in Frankfurt. Merrill Lynch raised to the stock to ``buy'' from ``neutral,'' citing ``modestly better'' personal-computer sales and expectations the software maker may boost its annual dividend to 26 cents a share from 8 cents.
Siemens, Germany's largest electronics company, rose 3.9 percent to 42.97 euros. Siemens ICN, the only unprofitable one of the Munich-based company's 13 divisions, expects a profit in the fourth quarter of the year ending September, Financial Times Deutschland reported, citing unit head Thomas Ganswindt.
Credit Suisse gained 5.3 percent to 36.60 Swiss francs after Manhattan federal court dismissed lawsuits accusing it, Merrill Lynch, Goldman Sachs Group Inc. and Morgan Stanley of misleading investors with biased research tailored to win investment banking business.
Some carmakers advanced after reporting growth in U.S. sales. Renault SA climbed 4.9 percent to 46.38 euros after Nissan Motor Co., in which it has a 44 percent stake, said U.S. sales advanced 22 percent in June from the year before.
DaimlerChrysler AG added 2.8 percent to 30.48 euros after its Mercedes Car Group reported sales rose 6.7 percent.
Pinault-Printemps-Redoute SA added 0.1 percent to 63.6 euros after Gucci Group NV said net income in the quarter ended April 30 plunged 97 percent to 1.2 million euros ($1.4 million). Pinault owns 63 percent of Gucci and has promised to pay $101.5 a share for the rest by April 2004.
The combined effects of the war in Iraq, the outbreak of severe acute respiratory syndrome and a strengthening euro had a ``devastating impact worldwide'' on the luxury goods business, Gucci Chief Executive Officer Domenico De Sole said.
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