Eurostocks flat ahead of US data, Bull soars High Street Networking

2 April 2004, 11:56 Eurostocks flat ahead of US data, Bull soars

French computer firm Bull soared on returning from a two-day suspension early on Friday but overall European shares were broadly flat with investors cautious ahead of a key U.S. employment report. Shares in Bull opened 14.3 percent higher after their suspension, as investors reacted to emergency steps taken by the company after the sudden death of its chief executive Pierre Bonelli, widely seen as the architect of the firm's recovery. Bull extended a suspension in place while it reported higher-than-forecast results to cover an emergency board meeting which named Chief Operating Officer Gervais Pellissier and board member and former Schneider boss Didier Pineau-Valencienne to implement the refinancing strategy.
British mortgage bank Northern Rock shed 1.6 percent despite saying it was comfortable with market forecasts of stronger 2004 earnings after first-quarter lending rose 16 percent. At 0734 GMT the FTSE Eurotop 300 index <.FTEU3> of pan-European blue chips was largely unchanged at 994 points. The narrower DJ Euro Stoxx 50 index <.STOXX50E> rose 0.26 percent to 2,827 points. Analysts said Europe's markets might still react to forecast-beating U.S. manufacturing data -- released only half an hour before European bourses closed on Thursday -- although the mood could be cautious ahead of March U.S. employment data due at 1330 GMT. "European markets didn't have time to factor in the full value of this ... information before the end of (Thursday's) session," said Matthew Buckland, a trader with CMC Group in London. "We're going to see the markets go through an adjustment first thing today ... with all eyes looking to the non-farm payroll figures this afternoon."
Investors are hoping for signs that the strengthening economy is creating enough jobs to set the conditions for a lasting recovery. Economists polled by estimated that U.S. payrolls added 103,000 jobs in March. Any disappointment with the numbers could trigger a new equity sell-off, strategists said. France's Renault led carmakers slightly higher, gaining after data showed its 44.4-percent-owned Japanese unit Nissan <7201.T> increased its March sales in the key U.S. market. Renault's shares were up one percent. Shares in Germany's Porsche rose 0.7 percent after its March U.S. sales gained 23.0 percent.///