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April 17, 2009, 11:50 a.m. EDT

Automakers lead rally for European shares

Carrefour, Accor shares slip after quarterly revenue declines

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By Sarah Turner, MarketWatch

LONDON (MarketWatch) -- European shares ended a strong week on positive note on Friday, with automakers leading a broad market rally.

ST:SXXP

Up 4.7% for the week, the pan-European Dow Jones Stoxx 600 index closed the session with a rise of 1.6% to 196.96.

Advancers outnumbered decliners by roughly a 2-to-1 margin in London, Paris and Frankfurt.

This week's gains extended a share rally that started in March, although shares are still roughly 37% below where they traded 12 months ago.

"I think that we are now beginning to lose the fear of an economic collapse but we haven't yet got the confidence that an economic recovery is underway," said Andrew Bell, strategist at Rensburg Sheppards.

However, Bell said he's more optimistic than pessimistic for the medium term .

"Although there are lots of headwinds from consumers wanting to pay off debts and banks being reluctant lenders, there's also been an unprecedented amount of financial stimulus coming through and I think in the end it will work," he said.

According to data from Thomson Reuters, analysts expect companies in the Stoxx 600 to record a 12.5% profit drop this year, while the sell-side sees earnings growing 15.8% in 2010.

On a regional level, the U.K. FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.27% rose 1% to 4,092.80, the German DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +0.01% 1.5% to 4,676.84 and the French CAC-40 index advanced 1.8% to 3,091.96.

European shares shook off a lackluster start to the session after earnings from U.S. industrial bellwether General Electric /zigman2/quotes/208495069/composite GE +0.31% and banking giant Citigroup /zigman2/quotes/207741460/composite C +0.10% exceeded analyst expectations. Read more on General Electric.Read more on Citigroup.

The results from Citigroup followed better than expected earnings from Goldman Sachs and J.P. Morgan earlier in the week.

Banks advancing in Europe included UBS /zigman2/quotes/206172872/composite UBS +0.49% , up 7.3%, while industrials were also higher, with Siemens /zigman2/quotes/214908078/composite SI +3.52% /zigman2/quotes/200873563/delayed DE:SIE +0.72% shares up 1.2%.

Automakers were the best performers. Ahead of next week's U.K. budget, in which incentives to scrap old cars are expected to be introduced, shares of Renault /zigman2/quotes/200919924/delayed FR:RNO -1.42% rose 10.2% and those of Fiat climbed 7.2%.

Fiat shares also got a boost on indications a deal with Chrysler appears likely.

Telecom equipment makers also saw gains, following on from Nokia's /zigman2/quotes/207421390/composite NOK +0.63% results on Thursday.

Nokia shares rose another 3.1%, with the firm getting an upgrade from J.P. Morgan, and Ericsson /zigman2/quotes/208932705/composite ERIC +2.76% /zigman2/quotes/207544813/delayed SE:ERIC.B +0.77% shares rose 4.1%.

Ericsson's mobile handset joint venture, Sony Ericsson Mobile Communications, reported a first-quarter pretax loss that broadly met forecasts while announcing 2,000 job cuts. Read more on Sony Ericsson results.

Still, hotels group Accor /zigman2/quotes/203800565/delayed FR:AC +0.04% and supermarket giant Carrefour /zigman2/quotes/208564127/delayed FR:CA -0.15% traded lower in Paris after both firms detailed a drop in first-quarter revenue.

Accor shares fell 4.7% and Carrefour shares declined 2.1%. See Carrefour story.

Beiersdorf /zigman2/quotes/210479173/delayed DE:BEI -0.52% dropped 8.6% as the maker of Nivea skin cream said first-quarter comparable sales dropped 4% and that its operating margin fell to 10.1% from 12.9%.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,486.67
+20.07 +0.27%
Volume: 445,496
Nov. 25, 2022 4:57p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,541.38
+1.82 +0.01%
Volume: 46,218
Nov. 25, 2022 6:30p
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/zigman2/quotes/208495069/composite
US : U.S.: NYSE
$ 88.14
+0.27 +0.31%
Volume: 1.89M
Nov. 25, 2022 1:10p
P/E Ratio
N/A
Dividend Yield
0.36%
Market Cap
$96.31 billion
Rev. per Employee
$447,988
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 48.29
+0.05 +0.10%
Volume: 6.82M
Nov. 25, 2022 1:10p
P/E Ratio
6.62
Dividend Yield
4.22%
Market Cap
$93.53 billion
Rev. per Employee
$413,881
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/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 18.55
+0.09 +0.49%
Volume: 1.20M
Nov. 25, 2022 1:10p
P/E Ratio
8.77
Dividend Yield
2.70%
Market Cap
$60.34 billion
Rev. per Employee
$483,785
loading...
/zigman2/quotes/214908078/composite
US : U.S.: NYSE
$ 29.14
+0.99 +3.52%
Volume: 3.00M
Nov. 25, 2022 1:10p
P/E Ratio
7.56
Dividend Yield
N/A
Market Cap
$922.53 million
Rev. per Employee
$1.04M
loading...
/zigman2/quotes/200873563/delayed
DE : Germany: Frankfurt
131.80
+0.94 +0.72%
Volume: 1,463
Nov. 25, 2022 10:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€219,884
loading...
/zigman2/quotes/200919924/delayed
FR : France: Euronext Paris
33.77
-0.49 -1.42%
Volume: 1.25M
Nov. 25, 2022 5:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€9.78 billion
Rev. per Employee
€281,064
loading...
/zigman2/quotes/207421390/composite
US : U.S.: NYSE
$ 4.82
+0.03 +0.63%
Volume: 8.94M
Nov. 25, 2022 1:10p
P/E Ratio
14.24
Dividend Yield
0.88%
Market Cap
$27.58 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208932705/composite
US : U.S.: Nasdaq
$ 6.32
+0.17 +2.76%
Volume: 3.38M
Nov. 25, 2022 1:00p
P/E Ratio
8.77
Dividend Yield
2.58%
Market Cap
$21.07 billion
Rev. per Employee
$263,855
loading...
/zigman2/quotes/207544813/delayed
SE : Sweden: Stockholm
kr 65.59
+0.50 +0.77%
Volume: 3.41M
Nov. 25, 2022 5:29p
P/E Ratio
9.62
Dividend Yield
3.81%
Market Cap
kr219.63 billion
Rev. per Employee
kr2.54M
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/zigman2/quotes/203800565/delayed
FR : France: Euronext Paris
24.79
+0.01 +0.04%
Volume: 292,777
Nov. 25, 2022 5:35p
P/E Ratio
432.64
Dividend Yield
0.00%
Market Cap
€6.52 billion
Rev. per Employee
€214,641
loading...
/zigman2/quotes/208564127/delayed
FR : France: Euronext Paris
16.55
-0.03 -0.15%
Volume: 993,725
Nov. 25, 2022 5:35p
P/E Ratio
12.51
Dividend Yield
3.14%
Market Cap
€12.12 billion
Rev. per Employee
€247,292
loading...
/zigman2/quotes/210479173/delayed
DE : Germany: Frankfurt
104.60
-0.55 -0.52%
Volume: 145.00
Nov. 25, 2022 10:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€360,586
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Sarah Turner is a markets reporter for MarketWatch in London.

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