27/03/2008 14:12
European bourses were stronger on Thursday, defying expectations of further losses after fall overnight on Wall Street, as financial stocks made progress after the world’s largest listed hedge fund said it expected to beat annual profit forecasts.
Resource stocks recovered in line with strengthening commodities markets and rose on renewed bid speculation.
Mining groups also stood out on the leaderboard, with French group Erament the latest name linked with bid interest from Vale of Brazil after the demise of its talks with London’s Xstrata. Eramet gained 3.7 per cent to 517.1p, the top riser on the FTSE Eurofirst 300. Xstrata continued to hold up, rising 1.3 per cent to £35.67.
Staying in London, Man Group predicted its annual profits would exceed forecasts of $1.8bn.
“Good performance has added $5.3 billion to investor assets during a period when global markets were exceptionally volatile. Redemption rates have fallen back towards recent low levels in the final quarter, “ said Peter Clarke, CEO.
The strong showing, set against the backdrop of the credit crisis and recent market turmoil, was enough to lift other financial stocks.
Credit Suisse rose 2.8 per cent to SFr51.90, BNP Paribas rose 2.3 per cent to €65.10 and ING was 1.9 per cent higher at €23.55.
Germany’s Hypo Real Estate offered further indication that the toll taken by the credit crunch may now be priced in on European equity markets.
Although the company warned shareholders it could miss its profit targets amid further writedowns in the wake of market turmoil and its exposure to a €1bn portfolio of collaterlaised debt obligations rooted in the US mortgage market, its shares rose 1.7 per cent to €16.61. There was relief on trading floors that the company’s statement did not contain new evidence of fresh problems.
Resource stocks recovered in line with strengthening commodities markets and rose on renewed bid speculation.
Mining groups also stood out on the leaderboard, with French group Erament the latest name linked with bid interest from Vale of Brazil after the demise of its talks with London’s Xstrata. Eramet gained 3.7 per cent to 517.1p, the top riser on the FTSE Eurofirst 300. Xstrata continued to hold up, rising 1.3 per cent to £35.67.
Staying in London, Man Group predicted its annual profits would exceed forecasts of $1.8bn.
“Good performance has added $5.3 billion to investor assets during a period when global markets were exceptionally volatile. Redemption rates have fallen back towards recent low levels in the final quarter, “ said Peter Clarke, CEO.
The strong showing, set against the backdrop of the credit crisis and recent market turmoil, was enough to lift other financial stocks.
Credit Suisse rose 2.8 per cent to SFr51.90, BNP Paribas rose 2.3 per cent to €65.10 and ING was 1.9 per cent higher at €23.55.
Germany’s Hypo Real Estate offered further indication that the toll taken by the credit crunch may now be priced in on European equity markets.
Although the company warned shareholders it could miss its profit targets amid further writedowns in the wake of market turmoil and its exposure to a €1bn portfolio of collaterlaised debt obligations rooted in the US mortgage market, its shares rose 1.7 per cent to €16.61. There was relief on trading floors that the company’s statement did not contain new evidence of fresh problems.
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