Miner Eurasian Natural Resources leads 100

| October 5, 2009 | 0 Comments
Miner Eurasian Natural Resources leads 100

European equities markets saw gains Monday on a merger in the telecommunications sector and on new data from the US services sector, as the Institute for Supply Management’s services sector purchasing managers’ index rose to 50.9 in September, from 48.4 in August, indicating slight growth in the sector for the first time in a year.

The FTSE 100 was up 0.71 percent to 5,024.33 in London, while the FTSE 250 added 0.93 percent to 8,982.53.

Miners saw gains, with Eurasian Natural Resources (LSE: ENRC) leading the 100 with a gain of 4.71 percent as Anglo American (LSE: AAL) and Antofagasta (LSE: ANTO) were also among the top five gainers on the 100 as they gained 3.97 percent and 3.68 percent respectively.

Banks were up, led by Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM), which added 4.12 percent, while building materials group Wolseley (LSE: WOS) turned in the worst performance of the day on the 100 as it fell 1.08 percent.

Over on the 250, defence specialists Chemring Group (LSE: CHG) added 9.04 percent for the best day on the index, while homebuilder Redrow dropped 2.6 percent for the worst performance of the day on the 250 despite gains for most other homebuilders.

The FTSE Eurofirst 300 was up 0.76 percent to 970.86 while the CAC-40 added 0.69 percent to 3,675.01 while the Dax was 0.75 percent higher to 5,508.85 and the IBEX gained 2.03 percent to 11,557.

Gains were helped by a merger in the telecommunications sector agreed to between Norwegian telecom Telnor (OSE: TEL; NAS: TELNF) and private Russian conglomerate Alfa Group.

Markets in the Asia-Pacific region were mostly lower as investors remained worried about recovery of the US economy.

The Nikkei 225 was down 0.59 percent to 9,674.49 in Tokyo, while the Topix index fell 0.84 percent to 867.28 and the Mothers market dropped 2.78 percent to 411.19.

Exporters declined on recent strength in the yen that could hurt profits from exports, and on the concerns about how fast and how much the US economy is recovering from the recession.

Banks and brokers were higher, however, and Fast Retailing (TYO: 9983) saw significant gains on higher sales and upgrades from Morgan Stanley, which raised its recommendation on the retailer from “equal-weight” to “overweight”, while UBS upped its recommendation on Fast from “neutral” to “buy.

The Sydney Ordinaries fell 0.58 percent to 4,579.3 in Australia, while the S&P/ASX200 was down 0.62 percent to 4,573.3.

Additionally, Straits Times Index was 0.8 percent lower to 2,583.73, the Sensex fell 1.56 percent to 16,866.41 and the Kospi dropped 2.29 percent to 1.606.9.

In Hong Kong, the Hang Seng added 0.26 percent to 20,429.07 while the Taiex gained 0.35 percent to 7,437.98 in Taiwan.

New York markets were up in midday trade as the Dow Jones Industrial Average added 0.74 percent to 9,558.1 at nearly 12:30 p.m. while at the same time the Nasdaq Composite was up 0.73 percent to 2,063.07 and the S&P 500 was 0.98 percent higher to 1,035.26.

Besides the gains in services sector data, gains were helped after Goldman Sachs raised its recommendation on large banks from “neutral” to “attractive” and upped its rating on Wells Fargo (NYSE: WFS) to “buy”.

The price of oil was lower in early afternoon trade in New York, while at the same time gold and silver were also trading higher.

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