Rolls-Royce declines on engine news

| November 15, 2010 | 0 Comments
Rolls-Royce declines on engine news

European equities markets were higher Monday on new data from the US Commerce Department showing in that retail sales in the United States were up 1.2 percent, more than expected and the biggest gain since March that outweighed continuing uncertainty over the debt problems of Ireland.

The FTSE 100 added 0.41 percent to 5,820.41 in London, while the FTSE 250 was 0.52 percent higher to 10,923.2.

Airplane engine manufacturer Rolls-Royce Group (LSE: RR) was down 2.29 percent for the worst performance on the 100 on the news that it could have to change out as many as 29 Trent 900 engines, the type of engine that exploded in flight to cause a Qantas Airlines flight to make an emergency landing earlier this month, due to oil leaks in the engines.

Engineering group Invensys (LSE: ISYS) turned in the best performance on the 100, adding 9.13 percent, while the best performer over on the 250 was online gambling operator Sportingbet (LSE: SBT), which added 8.3 percent to lead a mostly higher travel and leisure sector, followed in the sector by PartyGaming (LSE: PRTY), with a gain of 5.58 percent.

The worst performance on the 250 came from technology company Imagination Technologies Group (LSE: IMG), which was down 8.92 percent.

The retail sector was mostly higher, helped by the news on retail sales from the US and led by JD Sports Fashion (LSE: JD), which added 3.37 percent while auto retailer Inchcape (LSE: INCH) was up 2.77 percent and clothing and food retailer Marks & Spencer (LSE: MKS) gained 2.27 percent.

There were only five decliners in the retail sector, with Sports Direct International (LSE: SPD) doing worst as it dropped 1.94 percent.

Miners were mostly higher, led by Kenmare Resources (LSE: KMR) with a gain of 6.12 percent, while platinum miner Lonmin (LSE: LMI) added 4.02 percent after it reported that underlying earnings gained in the fiscal year ended in September, after posting a loss the previous year, and after it declared a dividend.

The worst of four decliners in the mining sector was Aquarius Platinum (LSE: AQP), which was down 1.88 percent.

The energy sector was also up on the session, with Salamander Energy (LSE: SMDR) doing best with a gain of 4.16 percent, while Premier Oil (LSE: PMO) added 3.45 percent on the news that it could be a bid target for Korean National Oil Corp, although Premier said no approach has been received.

Homebuilders were mostly lower, with Taylor Wimpey (LSE: TW) down 3.93 percent while Berkeley Group Holdings (LSE: BKG) dropped 3.3 percent.

The FTSE Eurofirst 300 was up 0.69 percent to 1,111.62 while the Dax added 0.82 percent to 6,790.17, the CAC-40 was 0.86 percent higher to 3,864.24 and the IBEX gained 10,349.7.

Markets were mixed in the Asia-Pacific region.

The Nikkei 225 was up 1.06 percent to 9,827.51 in Tokyo, and the Topix index was 0.54 percent higher to 851.56, but the Mothers market was down 0.1 percent to 368.58.

The gains in Tokyo came as the yen weakened, helping exporters, and on new data showing that Japan’s gross domestic product was up 3.9 percent in the quarter ending in September, much better than the expected gain of 2.5 percent.

Carmakers were up, with Toyota Motor (TYO: 7203) adding 1.45 percent while Honda Motor (TYO: 7267) was up 1.71 percent and Isuzu Motors (TYO: 7202) gained 2.09 percent.

Camera and copier maker Canon (TYO: 7751) was 0.25 percent higher, while optics and imaging group Konica Minolta (TYO: 4902) was up 1.59 percent.

Fast Retailing (TYO: 9983) gained 2.38 percent.

Other gainers in the region included South Korea’s Kospi, which was up 0.04 percent to 1,913.81 while the Sensex added 0.76 percent to 20,309.7 in India, and the Shanghai Composite gained 0.97 percent to 3,014.41.

The gains for Shanghai came even though there were media reports, denied by at least two of the banks involved, that four big banks in China stopped lending money to real estate developers at the end of October.

The banks involved were said in the reports to be Industrial & Commercial Bank of China Ltd (SSE: 601398; SEHK: 1398), Bank of China Ltd (SSE: 601988; SEHK: 3988) China Construction Bank Ltd (SSE: 601939; SEHK: 0939) and Agricultural Bank of China Ltd (SSE: 601288; SEHK: 1288).

Markets were lower in Australia, where the S&P/ASX200 was 0.1 percent lower to 4,688 and the Sydney Ordinaries dropped 0.12 percent to 4,773.3, while the Straits Times Index was down 0.47 percent to 3,236.8 in Shanghai, Hong Kong’s Hang Seng fell 0.81 percent to 24,027.2 and the Taiex dropped 0.91 percent to 8,240.65 in Taiwan.

New York markets were higher in early afternoon trade as the Dow Jones Industrial Average added 0.66 percent to 11,266.9, the S&P 500 was up 0.57 percent to 1,206.02 and the Nasdaq Composite was 0.36 percent higher to 2,527.2.

Prices for crude oil and metals were higher in New York trade.

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