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July 12, 2010, 12:01 p.m. EDT

European shares end higher as BP shares gain

Zodiac Aerospace, Fraport, Kontron also on the move

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By Sarah Turner, MarketWatch

LONDON (MarketWatch) -- European shares advanced on Monday, with oil giant BP trading sharply higher amid deal speculation, and as investors awaited the start of the U.S. second-quarter earnings season.

The Stoxx Europe 600 Index gained 0.4% to 251.18 in a choppy session, with shares of oil major BP jumping 9.4% to 399 pence.

Click to Play

The euro could rise a little longer

Upbeat remarks from ECB president Trichet and uncertainty about a U.S. double-dip recession will keep the EUR supported for a while. But it will then fall as concerns about European banks rise and data help resolve the U.S. outlook either way.

Monday's move for the index built on a 5.4% gain made last week, the best weekly performance in more than a year, as economic data, central-bank comments and some details on European bank stress tests boosted sentiment.

"Despite the rebound in risk last week, markets are left with much to ponder. The next milestones are the release of corporate earnings and the results of the European bank stress tests," said strategists at Citigroup.

Aluminum giant Alcoa Inc. /zigman2/quotes/200686102/composite AA +3.65% , set to report earnings after the close on Wall Street, unofficially kicks off the start of the U.S. second-quarter earnings season.

Of the main regional benchmarks, the French CAC-40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.95% rose 0.4% to 3,567.66, the U.K.'s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.54% closed up 0.7% at 5,167.02 and the German DAX index /zigman2/quotes/210597999/delayed DX:DAX +1.21% added 0.2% to 6,077.19.

In a reversal of Sunday's World Cup soccer final result, the Dutch AEX index rose 0.7% to 326.56, while the Spanish Ibex 35 index declined 0.7% to 10,058.2.

"The Dutch lost last night, but Spain faces the more uncertain economic future. They will need deep reserves to maintain their demonstrable competitive spirit in the years ahead," said economists at Royal Bank of Scotland.

Asian shares ended mixed, while U.S. stocks turned lower in morning trading.

Shares of BP /zigman2/quotes/202286639/delayed UK:BP +0.99% /zigman2/quotes/207305210/composite BP +1.93% climbed in London after the firm said that the installation of a new containment cap was proceeding as planned. The cap is intended to capture more of the oil that's been leaking into the Gulf of Mexico since an explosion on the Deepwater Horizon rig in April.

Also, the Sunday Times newspaper reported, without citing sources, that BP management was in talks to sell up to $12 billion of assets to Apache Corp. /zigman2/quotes/200648444/composite APA +2.04% , the U.S. oil firm, including a big stake in Alaska's Prudhoe Bay.

The newspaper reported that Exxon Mobil /zigman2/quotes/204455864/composite XOM +1.19% was mulling a takeover bid for the company. Read more on BP.

Also trading higher, Zodiac Aerospace shares climbed 7.1% to 42.62 euros.

The firm said over the weekend that it had received, and rejected, an approach from rival Safran /zigman2/quotes/206963350/delayed FR:SAF +1.47% , whose shares fell 2.6%.

Safran said that it "acknowledges the reaction of Zodiac's board while remaining convinced of the obvious logic from an industrial and a strategic perspective." Read more on Safran's approach.

Meanwhile, shares of German airport operator Fraport /zigman2/quotes/202529115/delayed DE:FRA +3.76% rose 2.6%. The company said the total number of passengers at its five majority-owned airports rose 11.8% during June to 9.2 million, with cargo throughput up 27.5% from a year earlier.

Groupe SEB /zigman2/quotes/210398461/delayed FR:SK +1.16% shares gained 6.3% after an upgrade to buy from neutral at Goldman Sachs. The broker said that it's raising forecasts for the manufacturer of irons and coffee machines to reflect geographic exposure and currency.

Kontron shares dropped 18%. The firm, which makes computers for slot machines, said that it will take a 34 million euro provision for outstanding receivables from customers in Malaysia, Taiwan and Hong Kong.

/zigman2/quotes/200686102/composite
US : U.S.: NYSE
$ 62.48
+2.20 +3.65%
Volume: 2.14M
May 17, 2022 11:11a
P/E Ratio
16.50
Dividend Yield
0.64%
Market Cap
$11.12 billion
Rev. per Employee
$1.06M
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,408.31
+60.54 +0.95%
Volume: 55,055
May 17, 2022 4:56p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,505.38
+40.58 +0.54%
Volume: 453,019
May 17, 2022 3:56p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,132.82
+168.44 +1.21%
Volume: 49,898
May 17, 2022 4:56p
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
422.50 p
+4.15 +0.99%
Volume: 27.38M
May 17, 2022 3:56p
P/E Ratio
N/A
Dividend Yield
4.22%
Market Cap
£80.90 billion
Rev. per Employee
£1.92M
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 31.62
+0.60 +1.93%
Volume: 3.17M
May 17, 2022 11:11a
P/E Ratio
N/A
Dividend Yield
4.09%
Market Cap
$99.12 billion
Rev. per Employee
$2.62M
loading...
/zigman2/quotes/200648444/composite
US : U.S.: Nasdaq
$ 43.28
+0.86 +2.04%
Volume: 2.48M
May 17, 2022 11:11a
P/E Ratio
6.11
Dividend Yield
1.17%
Market Cap
$14.71 billion
Rev. per Employee
$3.90M
loading...
/zigman2/quotes/204455864/composite
US : U.S.: NYSE
$ 92.03
+1.08 +1.19%
Volume: 6.76M
May 17, 2022 11:11a
P/E Ratio
15.20
Dividend Yield
3.84%
Market Cap
$383.13 billion
Rev. per Employee
$4.96M
loading...
/zigman2/quotes/206963350/delayed
FR : France: Euronext Paris
97.90
+1.42 +1.47%
Volume: 297,839
May 17, 2022 4:55p
P/E Ratio
1,958
Dividend Yield
0.51%
Market Cap
€41.13 billion
Rev. per Employee
€197,134
loading...
/zigman2/quotes/202529115/delayed
DE : Germany: Frankfurt
50.48
+1.83 +3.76%
Volume: 970.00
May 17, 2022 3:37p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€149,290
loading...
/zigman2/quotes/210398461/delayed
FR : France: Euronext Paris
105.00
+1.20 +1.16%
Volume: 27,696
May 17, 2022 4:55p
P/E Ratio
12.68
Dividend Yield
2.33%
Market Cap
€5.72 billion
Rev. per Employee
€246,484
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Sarah Turner is a markets reporter for MarketWatch in London.

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