Shawshank, VA 9/15/2011 (PennyPayDay) – The European markets are moderate to notably higher in afternoon trading Thursday, after optimism returned to investors in the region that Greece will not be let go out of the euro zone. Asian markets mostly rose and U.S. index futures are higher.French PM Nicolas Sarkozy and German Chancellor Angela Merkel said in a joint statement Wednesday that they are convinced that debt-ridden Greece will remain in the euro zone, easing fears of an imminent Greek debt default.
Greece has agreed to follow through with its promise to dramatically cut government spending and raise revenues with an unpopular property tax.
Meanwhile, the European Commission left the 2011 growth forecast for euro area unchanged, while slightly reducing the outlook for the third and fourth quarters. In the interim forecast, the executive arm of the European Union said it continues to see 1.6 percent expansion in the single currency bloc this year, unchanged from the May projection.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 2.49 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is advancing 1.65 percent.
The German DAX is climbing 2.31 percent and the French CAC 40 is adding 2.59 percent. The UK's FTSE 100 is adding 1.82 percent and Switzerland's SMI is gaining 0.48 percent.
Among the DAX components, Deutsche bank and Commerzbank are advancing 2.4 percent and 0.4 percent, respectively. Daimler and Volkswagen are notably higher.
Siemens is up 1.1 percent. Citigroup named Siemens the "Most preferred stock" for the next three months. ArcelorMittal is adding 5.7 percent after Citigroup Inc. reportedly raised the stock to "Buy" from "Hold." Lufthansa is adding 1.5 percent. Barclays cut its price target on the stock.
Fresenius is up 0.1 pecent. Citigroup initiated coverage of the stock with a "Buy" rating ad a price target of 86 euros. Chipmaker Aixtron is plunging over 19 percent after cutting its sales forecast for the year. Citigroup cut its pride target on the stock. Investment firm Deutsche Beteiligungs is up nearly 0.9 percent, although HSBC reduced its price target on the stock.
In Paris, BNP Paribas is surging 4.6 percent. Credit Agricole is advancing 2.3 percent and Natixis is gaining 1.3 percent. Societe Generale is modestly down, after Nomura reduced its rating on the stock to "Reduce" from "Buy" and loweerd the price target.
Cap Gemini is up 4.1 percent. STMicroelectronics is rising 3.1 percent. Renault is gaining 3.7 percent and Peugeot is adding 3.1 percent.
In London, Rio Tinto, BHP Billiton, Anglo American and Antofagasta are advancing between 1.6 percent and 3.2 percent.
Barclays is adding 3.7 percent, Lloyds Banking is gaining 3.5 percent and Royal Bank of Scotland is climbing 3.7 percent. HSBC is advancing 2.1 percent.
Kingfisher is surging 5.1 percent. The retailer said profit in the first six months of the year improved from last year, despite challenging economic conditions, and that it would create over 1,200 new jobs across the UK this year as it expands its B&Q and Screwfix operations. Next and Burberry also saw significant gains.
BP is adding 3.2 percent. Royal Dutch Shell is gaining 1.6 percent.
Associated British Foods is adding 3.3 percent reporetdly on a broker upgrade.
Kesa Electricals is adding 4.2 percent. The company said total group revenue for the first quarter fell by 9.9 per cent on a like-for-like basis, reflecting weakening market conditions and strong World Cup comparatives of the last year.
UBS is plunging over 8 percent. The Swiss banking giant said it may report a loss for the third quarter, as it discovered a loss due to unauthorized trading by a trader in its Investment Bank.
Hennes & Mauritz AB is gaining 6.1 percent in Stockholm. The apparel retailer reported strong growth in total sales in August and the third quarter, reflecting increased number of stores in operation.
Volvo is adding 3.4 percent. The automaker reported a 35 percent year-over-year increase in total deliveries from its truck operations in August, mainly driven by strength in medium and heavy duty vehicle deliveries.
In economic news, retail sales in the U.K. declined in August, but less than expected by economists, according to data released by the Office for National Statistics. Sales, including automotive fuel, fell 0.2 percent month-on-month in August, better than forecasts for a 0.3 percent decline.
Eurozone annual inflation held steady at 2.5 percent in August, in line with flash estimate, final data published by the Eurostat showed. Meanwhile, employment in the euro area increased a seasonally adjusted 0.3 percent sequentially in the second quarter, faster than the 0.1 percent growth seen in the first quarter.
In Germany, employment in manufacturing units with 50 or more employees increased 3.3 percent annually to 5.1 million in July, preliminary data released by statistical office Destatis revealed.
The Swiss National Bank said it would enforce the minimum exchange rate of Swiss franc at 1.20 per euro, as decided on September 6, with the 'utmost determination'. Also, the bank said it is prepared to purchase foreign currency in unlimited quantities.
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