Tullow Oil up 7.83 percent

| September 7, 2011
Tullow Oil up 7.83 percent

European markets were higher Wednesday after the German Federal Constitutional Court dismissed three challenges to German participating in a loans package to Greece and another fund aimed at keeping Europe’s debt crisis contained.

The FTSE 100 was up 3.14 percent to 5,318.59 in London, while the FTSE 250 added 2.48 percent to 10,321.3.

The energy sector was higher as Tullow OIl (LSE: TLW) added 7.83 percent to lead gains on the 100 as well as in its sector, followed by a 7.26 percent gain for Petrofac Ltd (LSE: PFC), while the sector saw only one decline as oil rig builder and refurbisher Lamprell (LSE: LAM) dropped 2.45 percent.

Facilities management and business support specialist Regus (LSE: RGU) led gains on the 250, adding 11.75 percent.

The mining sector was mostly higher, with iron ore miner Ferrexpo (LSE: FXPO) adding 8.44 percent, but the worst of three decliners in the sector, Randgold Resources (LSE: RRS), led declines on the 100, dropping 2.31 percent.

Pubs operator Spirit Pub Company (LSE: SPRT) was down 3.85 percent as the worst performer on the 250.

Banks were higher on the session, led by a 6.44 percent gain for Lloyds Banking Group (LSE: LLOY).

Clothing retailer SuperGroup (LSE: SGP) added 6.97 percent after it said sales were up 66 percent in the first quarter as it opened more stores.

The FTSE Eurofirst 300 was up 2.97 percent to 930.69, while the IBEX added 2.77 percent to 8,156.6 with just one decline, the CAC-40 was 3.63 percent higher to 3,073.18 and the Dax gained 4.07 percent to 5,405.53, with no decliners on either the CAC-40 or the Dax.

Markets in Asia and the Pacific region were higher.

The Nikkei 225 was up 2.01 percent to 8,763.41 in Tokyo, while the Topix index added 1.68 percent to 753.63 and the Mothers market gained 0.37 percent to 431.23 after the yen was weaker than it had been in a month and the government said it will ask the G7 nations to support a weaker yen.

The weaker yen helped exporters, including carmakers, as Honda Motor (TYO: 7267) added 1.6 percent and Toyota Motor (TYO: 7203) was up 2.9 percent.

Shippers saw gains after Credit Suisse began coverage of the sector with an “overweight” recommendation, sending Nippon Yusen KK (TYO: 9101) 2.3 percent higher while Kawasaki Kisen Kaisha (TYO: 9107) added 3.3 percent and Mitsui OSK (TYO: 9104) gained 4 percent.

Besides the “overweight” rating on the sector as a whole, Credit Suisse issued “outperform” recommendations for all three shippers.

The Sensex was up 1.2 percent to 17,065 in India, Hong Kong’s Hang Seng added 1.71 percent to 20,048, the Shanghai Composite was 1.84 percent higher to 2,516.09, Singapore’s Straits Times Index gained 2.08 percent to 2,832.13, the Taiex was up 2.2 percent to 7,529.01 in Taiwan, Australia’s markets advanced as the Sydney Ordinaries added 2.46 percent to 4,262.9 and the S&P/ASX200 was 2.65 percent higher to 4,183.4, and South Korea’s Kospi gained 3.78 percent to 1,833.46.

New York equities markets saw gains on fewer worries about the European debt crisis after the German court ruling on that nation’s participation in bailout plans, with the Dow Jones Industrial Average up 1.69 percent to 11,327.8 at 12:30 p.m. local time, while the S&P 500 had added 2.08 percent to 1,189.42 and the Nasdaq Composite was 2.16 percent higher to 2,527.25.

Crude oil prices were significantly higher as the US dollar weakened and equities markets advanced, with West Texas Intermediate crude up $3.04 to $89.06 per barrel in midday trade on the New York Mercantile Exchange, while Brent crude was recently reported up $2.51 per barrel to $115.40 per barrel on the ICE Futures Europe exchange in London.

Precious metals prices were down in New York trade at midday, with gold down $56.20 to $1,817.10 per troy ounce while silver had dropped 51 cents to $41.36 per troy ounce.

Copper prices were higher as a strike began at a Freeport-McMoRan (NYSE: FCX) copper mine in Peru, with workers asking for higher wages in a job action that is expected to last two days, although a second strike is scheduled to begin on 14 September if an agreement is not reached earlier.

Copper was up 8 cents to $4.13 per pound at midday in New York, while three-month contracts were $166.75 higher to $9,099.75 in afternoon trade on the London Metal Exchange.

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