TNT shares tumble after company cuts outlook at express unit
By Aude Lagorce , MarketWatch
LONDON (MarketWatch) — European markets rose on Friday, buoyed by a rally in Japanese stocks overnight and a surge in precious-metal prices.
The Stoxx Europe 600 index (ST:STOXX600 282.08, +1.30, +0.46%) advanced 0.5% to 282.3 in late-morning trading, led by mining and insurance stocks.
The benchmark finished 0.3% lower on Thursday after Japan was shaken by another earthquake, and the European Central Bank raised interest rates for the first time in nearly three years, as expected.
In Japan, as jitters calmed following the aftershock and some retailers benefited from positive earnings reports, stocks rallied. The Nikkei Stock Average (JP:NI225 9,768, +177.15, +1.85%) closed up 1.9%.
“There was relief in Asia after the tsunami warning was lifted and that carried on to the European markets this morning,” said Oliver Gilvarry, head of research at Dolmen Stockbrokers.
“The interest-rate hike from the ECB and the Portuguese news were well priced in so there is nothing negative strongly affecting sentiment,” he added.
Miners advanced Friday, helped by news that Rio Tinto PLC (UK:RIO 4,474, +88.50, +2.02%) has clinched a majority interest in long-pursued Riversdale Mining (AU:RIV 16.52, +0.01, +0.06%) , boosting chances its takeover offer will be approved.
Rio shares rose 1.6%. Elsewhere in the sector, Kazakhmys PLC (UK:KAZ 1,496, +34.00, +2.33%) added 1.6% and BHP Billiton PLC (UK:BLT 2,579, +62.00, +2.46%) gained 2.3%.
Gold prices rose once again as a weaker dollar and concerns about inflation led investors to seek refuge in precious metals. Copper and silvers prices also advanced.
In Portugal, the PSI 20 index gained 0.9% to 7,977.3. European finance ministers are meeting in Hungary Friday and Saturday to try and work out the size and terms of a bailout package for debt-laden Portugal.
The banking sector may come in focus later Friday when the European Banking Authority reveals how much capital the region’s banks need to hold going forward. The regulator will also name the 90 or so banks that need to undergo a health check to determine whether they have enough.
A handful of banks, including Germany’s Commerzbank AG (DE:CBK 5.45, -0.01, -0.15%) and Italy’s Intesa Sanpaolo SpA (IT:ISP 2.27, -0.02, -0.88%) , have been bolstering capital ahead of the checks.
There were a few large individual movers Friday.
Dutch mail and parcel-delivery company TNT N.V. (NL:TNT 16.54, -1.77, -9.66%) dropped nearly 10% after the group cut the outlook for its express division, citing the sharp increase in the oil price, political unrest and natural disasters. TNT said it will push ahead with the spinoff of the unit next month nonetheless.
In France, shares of Lafarge SA (FR:LG 45.79, +0.68, +1.51%) , the world’s biggest cement maker, rose 1.4%. Reuters reported Thursday that the European arm of the group’s plaster unit has attracted interest from private-equity funds, citing sources.
The CAC 40 index (FR:PX1 4,064, +35.66, +0.89%) advanced 0.9% to 4,065.09.
Steel-tube maker Vallourec SA (FR:VK 84.20, +3.85, +4.79%) rose 3% after Credit Suisse lifted its rating on the stock to outperform from neutral to reflect the “high growth” it expects the company to deliver compared with peers.
In Germany, the DAX 30 (DX:DAX 7,220, +41.69, +0.58%) gained 0.7% to 7,226.72, led by gains for exchange operator Deutsche Boerse AG (DE:DB1 54.33, +1.30, +2.45%) , up 2.4%.
The U.K.’s FTSE 100 benchmark (UK:UKX 6,062, +54.70, +0.91%) added 0.8% to 6,054.9, led by miners and shares of defensive stocks like utility Scottish & Southern Energy PLC (UK:SSE 1,302, +19.00, +1.48%) , up 2.3%, and drug maker Shire PLC (UK:SHP 1,820, +29.00, +1.62%) , up 1.9%.
On the downside, Reed Elsevier PLC (UK:REL 539.00, +1.50, +0.28%) fell 0.5%. J.P. Morgan cut its rating on the specialist publisher to neutral from overweight.
Shares of interdealer broker ICAP PLC (UK:IAP 519.00, -21.00, -3.89%) sagged nearly 4% after Credit Suisse cut its rating on the stock to underperform from neutral, citing the stock’s full valuation.
