European Stocks Finish Mostly Higher

A roundup of Wednesday's action on major European exchanges

by S&P MarketScope Europe Staff

LONDON

The FTSE 100 ended a choppy midweek session flat. Meanwhile, Wall Street was higher on the back of a lower-than-expected US CPI for April. In London, caution prevailed after the BOE warned inflation could spike above 4% this year. On the trading floor, miners rallied on speculation of Chinese stake-building in BHP BILLITON (+4.85%) and a positive update from ENRC (+7.19%). On the downside, ALLIANCE & LEICESTER (-2.83%) extended yesterday's losses on fears of further write-downs. More pain for financials as BRADFORD & BINGLEY (-9.29%) unveiled a GBP300m rights issue, at a 48% discount, and said the next dividend will be paid in shares. ASTRAZENECA (+1.87%) gained after the FDA approved the use of Seroquel for maintenance treatment of manic depression. SAINSBURY (-3.91%) reported in-line FY profits but shares fell on outlook. FIRST GROUP (-6.26%) plunged on news it will place up to 43.7m new shares. TESCO (-1.72%) buys 36 stores from South Korea's E-Land for GBP958m. COMPASS (+4.6%) posted solid interim results and said it will buy back GBP400m worth of shares. AMEC (-1.26%) said trading so far is slightly better than expected. BARRATT (-3.4%) reported a relatively encouraging start to the new calendar year but said conditions have been worsening significantly since March. LOGICA (+3.98%) announced a 3% rise in FY revenues. JOHNSTON PRESS (-15.1%) plummeted on a GBP212m rights issue.

PARIS

The CAC 40 (+1.13%) closed the session firmly higher while Wall Street trades in positive territory following a lower-than-expected CPI reading. Back home, a flurry of earnings reports made the waves. BNP PARIBAS (+4.86%) posted a 21% slide in 1Q net profit to EUR 1.981bn - not as bad as generally feared. The bank reiterated it is not planning a move for SOCGEN (+0.59%). DEXIA's (-1.01%) 1Q core earnings topped expectations, coming in at EUR 769m, up from EUR 88m for the same period a year ago. Also among financials, ING downgraded CREDIT AGRICOLE (-0.31%) to hold from buy. Elsewhere, EADS's (+5.85%) 1Q core earnings beat expectations - coming in at EUR 769m, up from EUR 88m for the same period a year ago. ARCELOR MITTAL (+4.13%) reported broadly in-line 1Q numbers, with EBITDA at US$5.0bn and net profit at US$2.4bn. VINCI (+2.81%) posted 1Q revenues of EUR 7.2bn, up 7.5% y/y on a comparable basis (up 17.2% y/y reported), and above consensus of EUR 7.02bn. CARREFOUR (+1.02%) unveiled 1Q08 sales of EUR 23.375bn, up 10.5% ex currency (+6.4% LFL), above consensus. Confirmed FY objectives. In the wider market, THALES (+1.42%) tabled 1Q sales up 5.3% to EUR 2.31bn. Confirmed FY targets. ARKEMA (+9.44%) announced 1Q net profit of EUR 72m, up 64%. CGG VERITAS (-2.87%) reported 1Q group revenue of EUR 585m; op income EUR 123m, -14%. INFOGRAMES (-3.15%) unveiled FY sales of EUR 290.70m, down 4.8%.

FRANKFURT

Xetra-Dax (+0.33%) finished the day with minor gains, as US markets traded firmly in the black amid mild inflation data. It was a busy day for earnings releases. E.ON (+0.52%) reported 1Q adjusted EBIT of EUR 3.3bn, missing estimates, but confirmed its 2008 guidance. DEUTSCHE POST's (+2.26%) 1Q core earnings came in shy of expectations, with EBIT slipping 15% y/y to EUR 851m. It also reiterated previously given guidance. THYSSENKRUPP (+1.79%) posted 2Q PTP of EUR 742m, excluding EUR 42m in one-off costs. This was up from EUR 572m a year ago, but still a touch below expectations. Citing a number of problems, it delayed the start of a new mill in Brazil. K+S (+7.6%) saw its 1Q EBIT come in at EUR 226.3m, better than expected. Q-CELLS' (+8.74%) 1Q core earnings also topped expectations, with EBIT coming in at EUR 58.9m. Posting 1Q net profit of EUR 6.9m and confirming its outlook for 2008, SOLON (+1.64%) said it currently plans no capital injection. STADA's (+3.94) quarterly numbers were lower than expected, but analysts pointed to positive momentum. LANXESS (+9.06%) disclosed a 13% rise in 1Q net profit to EUR 103m. AAREAL (-4.98%) tabled a lower-than-expected 1Q net profit of EUR 13m. In M&A news, the FTD reported that INFINEON (+0.15%) was talking with KKR about a merger with chipmaker NXP. MEDIGENE (+11.