Tuesday, August 31, 2010

European stock exchanges closed little changed

European stock exchanges closed little changed after a decline over three weeks. Takeover activity several companies managed to offset the decline in Europe Stoxx index of 600 stocks driven by the automotive industry. Aerospace Zodiac SA stock price soared 10% after La Tribune reported that Safran SA prepares bid to chair the largest aircraft manufacturers in Europe are. Sanofi-Aventis share price of SA is also good after the filing of Genzyme Corp. purchases worth U.S. $ 18.5 billion.

Valeo SA share price fell 2.4% after auto parts manufacturer in France is the second largest predict the occurrence of slowing demand later this year.

Stoxx 600 Index yesterday closed down less than 0.1% to 251.16 on the London stock exchange. This index could go up and down turns over 11 times. Stox index has risen 8.2% from a low level in May following the steps central banks around the world who keep the interest rates at low levels and the purchase of debt securities in order to stimulate economic activity.

"We have full support from the central bank. It is hard to end the policy of quantitative incentives because the level of trust is the most important for U.S. economic policy today," said Robert Halver, head of research unit at Baader Bank AG in Frankfurt.

National benchmark index in 9 of 17 exchanges in Europe west of the open today rose. Germany's DAX index fell 0.7% while France's CAC 40 index fell 0.6%. UK stock markets closed for national holidays.

Zodiac Aerospace shares, which rejected an offer from the manufacturer Safran jet last month, recorded a rally 10% to 47.89 euros, the highest since 2003. Safran will make a final decision about whether they will accept the offer within a few days ahead and will decide whether they will pay a premium of 35%.

Sanofi stock price climbed 0.7% to 45.56 euros after saying they made an offer to buy Genzyme amounted to U.S. $ 18.5 billion in cash. Genzym reject Sanofi bid worth U.S. $ 69 per share as too low.

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