04/02/2004 12:38
Technology and motor stocks drove European bourses lower on Wednesday after investors were disappointed by overnight results from Cisco System's and weaker US vehicle sales.
In mid-morning trade, the FTSE Eurotop 300 was down 0.3 per cent to 977.93, while Frankfurt's Xetra Dax fell 0.7 per cent to 4,028.44. In Paris, the CAC 40 was 0.7 per cent lower at 3,612.43 and London's FTSE 100 shed 0.2 per cent to 4,380.7.
On Wall Street overnight, the major stock indicators overcame early weakness, caused by the discovery of the poison ricin in a US Senate office, to close marginally higher. But after hours trade dominated as Cisco fell 4 per cent after the bell following its earnings report that failed to match the high expectations of investors. Early indications were for opening losses.
European techs subsequently came under early pressure. In France, Alcatel fell 4 per cent to €12.62, while STMicroelectronics lost 0.2 per cent to €21.25. Germany's Infineon was down 2.2 per cent to €11.93 and Nokia in Finland slid 1 per cent to €16.56.
Late on Tuesday, US motor manufacturers released car and truck sales numbers that showed a slowdown in January as cold weather kept punters away from the showrooms. General Motors and Ford posted surprisingly weak figures.
But DaimlerChrysler, the Germany-US carmaker, failed to be inspired by its US Chrysler division's fourth-straight month of year-on-year gains after it reported sales rose 9.4 per cent in January. Shares lost 1.6 per cent to €36.70.
Elsewhere in the sector, BMW fell 2.1 per cent to €34, Volkswagen slipped 1.1 per cent to €38.57 and Renault was 1.1 per cent lower at €51.75.
Bank stocks were in focus after ABN Amro, the Dutch financial group, reported a 31 per cent rise in full-year net profit. Recovering stock markets, better cost control and bad-debt provisions, aided by a return to profit by its investment banking and brokerage arm, enabled earnings of €3.161bn for 2003. This beat its own guidance and was up from €2.21bn in 2002 and shares overcame early weakness to gain 0.3 per cent to €19.20.
Meanwhile, Spanish bank BBVA, issued financing details of its bid for the rest of the shares it does not already own in Mexico's Bancomer. The company said it was to issue up to 195m new shares to raise around €1.93bn. Its shares were 1.6 per cent weaker at €10.32.
France Telecom reported a 40 per cent gain in full-year operating profit to €9.5bn, broadly in line with expectations. But shares tumbled 4.1 per cent to €22.76 as the company said sales fell 1.1 per cent as declining fixed-line revenues bit into gains for its mobile and internet operations. The company remained upbeat about the current year, saying sales should rise as restructuring begins to pay off.
Switzerland's Roche fell 0.4 per cent to SFr129 after it announced a full-year net profit of SFr3.1bn as drugs sales rose 23 per cent. The numbers fell short of market expectations, but the company said its pharmaceuticals unit was committed to its target of a 26 per cent operating margin by the end of 2004.
Bayer, the German drugmaker, fell 3.3 per cent to €23.34 after it emerged the company faced patent problems over one of its biggest selling antibiotics. The US Food and Drug Administration said it had received an application for a generic version of Bayer's Avelox.
In mid-morning trade, the FTSE Eurotop 300 was down 0.3 per cent to 977.93, while Frankfurt's Xetra Dax fell 0.7 per cent to 4,028.44. In Paris, the CAC 40 was 0.7 per cent lower at 3,612.43 and London's FTSE 100 shed 0.2 per cent to 4,380.7.
On Wall Street overnight, the major stock indicators overcame early weakness, caused by the discovery of the poison ricin in a US Senate office, to close marginally higher. But after hours trade dominated as Cisco fell 4 per cent after the bell following its earnings report that failed to match the high expectations of investors. Early indications were for opening losses.
European techs subsequently came under early pressure. In France, Alcatel fell 4 per cent to €12.62, while STMicroelectronics lost 0.2 per cent to €21.25. Germany's Infineon was down 2.2 per cent to €11.93 and Nokia in Finland slid 1 per cent to €16.56.
Late on Tuesday, US motor manufacturers released car and truck sales numbers that showed a slowdown in January as cold weather kept punters away from the showrooms. General Motors and Ford posted surprisingly weak figures.
But DaimlerChrysler, the Germany-US carmaker, failed to be inspired by its US Chrysler division's fourth-straight month of year-on-year gains after it reported sales rose 9.4 per cent in January. Shares lost 1.6 per cent to €36.70.
Elsewhere in the sector, BMW fell 2.1 per cent to €34, Volkswagen slipped 1.1 per cent to €38.57 and Renault was 1.1 per cent lower at €51.75.
Bank stocks were in focus after ABN Amro, the Dutch financial group, reported a 31 per cent rise in full-year net profit. Recovering stock markets, better cost control and bad-debt provisions, aided by a return to profit by its investment banking and brokerage arm, enabled earnings of €3.161bn for 2003. This beat its own guidance and was up from €2.21bn in 2002 and shares overcame early weakness to gain 0.3 per cent to €19.20.
Meanwhile, Spanish bank BBVA, issued financing details of its bid for the rest of the shares it does not already own in Mexico's Bancomer. The company said it was to issue up to 195m new shares to raise around €1.93bn. Its shares were 1.6 per cent weaker at €10.32.
France Telecom reported a 40 per cent gain in full-year operating profit to €9.5bn, broadly in line with expectations. But shares tumbled 4.1 per cent to €22.76 as the company said sales fell 1.1 per cent as declining fixed-line revenues bit into gains for its mobile and internet operations. The company remained upbeat about the current year, saying sales should rise as restructuring begins to pay off.
Switzerland's Roche fell 0.4 per cent to SFr129 after it announced a full-year net profit of SFr3.1bn as drugs sales rose 23 per cent. The numbers fell short of market expectations, but the company said its pharmaceuticals unit was committed to its target of a 26 per cent operating margin by the end of 2004.
Bayer, the German drugmaker, fell 3.3 per cent to €23.34 after it emerged the company faced patent problems over one of its biggest selling antibiotics. The US Food and Drug Administration said it had received an application for a generic version of Bayer's Avelox.
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