subject: European Market Updates [print this page] The major European markets, which opened Wednesday's session lower, have now turned mixed. The French CAC 40 Index and the U.K. FTSE 100 Index are moving down 0.11% and 0.63%, while the German DAX Index rising 0.27%.
In corporate news, Societe Generale reported that its second quarter earnings rose to 1.08 billion euros from 309 million euros in the year-ago period. Revenues rose 17% to 6.68 billion euros.
German insurer Munich Re reported second quarter earnings of 709 million euros, higher than 697 million euros in the year-ago period. The company reaffirmed its full year guidance of more than 2 billion euros in net income before minority interests.
U.K. banking giant Lloyds reversed to a profit of 1.6 billion pounds in the first half of this year from a loss of 4 billion pounds in the year-ago period. Meanwhile, peer Royal Bank of Scotland confirmed reports about the sale of 318 branches along with associated assets to Banco Santander for 1.65 billion pounds. The sale is expected to be completed in 12-18 months.
BP announced that its ruptured well in the Gulf of Mexico appears to have reached a static condition. U.K.-based REIT British Land also reversed to a profit of 172 million pounds in its first quarter from a loss of 273 million pounds last year.
On the economic front, the British Retail Consortium said shop prices were 1.5% higher in July than a year ago, the same rate of growth as in June. Food inflation increased to 2.5% in July from 1.7% in June, while non-food inflation slowed to 1% from 1.4%.
Halifax's house price survey showed that U.K. house prices unexpectedly rose 0.6% month-over-month in June. The agency's housing economist Martin Ellis said, "The mixed pattern of monthly rises and falls over the first seven months of the year is consistent with a slowing market. It is also in line with our view that house prices will be broadly unchanged over 2010 as a whole."
The eurozone service sector saw a faster expansion in July, driven by higher levels of activity in France and Germany, the results of a survey showed. The Markit services business activity index rose to 55.8 from 55.5 in June. This was slightly below the earlier preliminary estimate of 56.0.
A report released by Eurostat showed that retail sales remained unchanged in June compared to the previous month. The annual growth slowed to 0.4% from 0.6% in May, although it was better than expectations for a 0.1% increase.
U.S. Economic News
Private sector employment increased for the sixth consecutive month in July, according to a report released by payroll processor ADP day, with the increase in employment exceeding economist estimates.
ADP said that non-farm private employment increased by 42,000 jobs in July following an upwardly revised increase of 19,000 jobs in June. Economists had expected an increase of about 25,000 jobs compared to the addition of 13,000 jobs that had been reported for the previous month.
The ISM is scheduled to release the results of its non-manufacturing survey at 10 AM. The non-manufacturing index is likely to show a reading of 53 for July.
The non-manufacturing index fell to 53.8 in June from 55.4 in May, retreating to its lowest level since February. Economists had expected a much more modest drop to 55. The business activity index declined 3 points to 58.1 and the new orders index fell to 54.4 from the month-ago's 57.1. As expected, the employment index dipped back below the '50' level to 49.7. The prices paid index also declined, dropping about 7 points to 53.8.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended July 30th at 10:30 AM ET.
The previous weekly oil inventory report showed a 7.3 million barrel increase in crude oil stockpiles in the week ended July 23rd to 360.8 million barrels, with inventories above the upper limit of the average range.
Gasoline stockpiles edged up 0.1 million, remaining above the upper limit of the average range. Distillate inventories rose by 0.9 million barrels and were above the upper boundary of the average range. Refinery capacity averaged 90.6% over the four weeks ended July 23rd compared to 91.5% in the previous week.
