TUI Travel leads gains on 100

| May 12, 2010
TUI Travel leads gains on 100

Equities markets were higher in Europe Wednesday as quarterly reports were positive several sectors, after the Spanish government said it will cut public sector wages by 5 percent and put a planned pensions increase on hold to save money, and after new UK Prime Minister David Cameron’s chancellor of the exchequer is expected to present an emergency budget with £6 billion in cuts within 50 days.

The FTSE 100 added 0.92 percent to 5,383.45 in London, while the FTSE 250 was up 2.11 percent to 10,186.92.

The travel and leisure sector was mostly higher as travel agents led gains on the 100, with TUI Travel (LSE: TT) adding most on the index with a gain of 6.47 percent, followed by Thomas Cook Group (LSE: TCG), which added 5.98 percent.

Caterer Compass Group (LSE: CPG) was up 5.92 percent after it reported profits up 17 percent in its fiscal first half.

Still in travel and leisure, pubs operators did not do as well as J D Wetherspoon (LSE: JDW) fell 4.38 percent, the biggest decline in the sector, followed by Enterprise Inns (LSE: ETI), which dropped 2.23 percent.

The best performance of the day came on the 250, where oil and gas explorer Soco International (LSE: SIA) added 8.84 percent to lead a mostly higher sector, but BP (LSE: BP) fared the worst of three decliners in the sector as it dropped 0.71 percent.

Royal Dutch Shell’s (LSE: RDSA, RDSB) A and B shares were also lower, falling 0.29 percent and 0.33 percent respectively.

Most miners were higher, led by Hochschild Mining (LSE: HOC), which added 7.09 percent, while BHP Billiton (LSE: BLT) turned in the worst performance in the sector, falling 0.23 percent.

Banks were mostly higher, led by Barclays Bank with a gain of 1.04 percent, but the two decliners in the sector turned in the worst two performances of the day on the 100 as Royal Bank of Scotland (LSE: RBS) fell 3.2 percent and Lloyds Banking Group (LSE: LLOY) dropped 1.31 percent.

The worst performance in London on the session came from Provident Financial (LSE: PFG), which was down 4.26 percent.

The FTSE Eurofirst 300 was up 1.36 percent to 1,049.1 while the IBEX added 0.81 percent to 10,089.8, the CAC-40 was 1.1 percent higher to 3,733.87 and the Dax gained 2.41 percent to 6,183.49.

In Spain, builder Sacyr Vallehermoso (BMAD: SYV) added 8 percent after it reported that profits added more than double the amount analysts had predicted.

There was only one decliner on the CAC-40 as Societe Generale (Euronext: GLE) fell 1.52 percent, while only two stocks dropped on the Dax.

Markets in the Asia-Pacific region were mixed.

The Nikkei 225 was down 0.16 percent to 10,394.03 and the Mothers market dropped 1.32 percent to 452.39, but the Topix index added 0.08 percent to 932.83.

Banks were lower in Tokyo on concerns that they will need to raise more capital, with Mizuho Financial Group (TYO: 8411) down 1.2 percent on rumors that it will sell up to ¥1 trillion in new shares.

Sumitomo Mitsui (TYO: 8316) fell 0.6 percent, while Mitsubishi UFJ (TYO: 8306) dropped 2.4 percent on the news that US prosecutors are investigating Morgan Stanley (NYSE: MS) for misleading some investors.

Mitsubishi UFJ owns around a 20 percent share of Morgan Stanley.

Toyota Motor (TYO: 7203), which added 2.7 percent after it said it thinks profits will be up by 48 percent this fiscal year, but Olympus Corp (TYO: 7733) dropped 7.7 percent on an downgrade from “neutral” to “underweight” from JPMorgan Chase and after the optics and imaging group issued an outlook saying that its net income will likely fall 56 percent in the current fiscal year.

The Taiex dropped 0.08 percent to 7,602.7 in Taiwan, while South Korea’s Kospi was 0.43 percent lower to 1,663.03.

On the other hand, the Shanghai Composite added 0.31 percent, while the Sensex was up 0.32 percent to 17,195.81 and the Hang Seng added 0.33 percent to 20,212.49 even though Hong Kong-listed property developers with interests in China saw further declines on concerns that higher prices will mean higher interest rates in an effort to control inflation.

In Australia, the S&P/ASX200 was 0.55 percent higher to 4,573 and the Sydney Ordinaries gained 0.58 percent to 4,599.7, while the Straits Times Index added 0.79 percent to 2,880.33 in Singapore.

New York markets were higher in midday trade as the Dow Jones Industrial Average added 1 percent to 10,855.8, while at the same time the S&P 500 was up 0.96 percent to 1,166.89 and the Nasdaq Compsoite had gained 1.45 percent to 2,409.72.

Crude oil prices were mixed at midday as West Texas Intermediate had dropped on a new inventories report from the US Energy Information Administration but Brent crude was up slightly.

Metals prices were also mixed as gold traded at $1,245.80, a gain of $25.50 and a new record for a most-active contract and silver was also higher, but copper prices had fallen.

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