US job hopes, ING cheer European stocks High Street Networking

2 April 2004, 15:21 US job hopes, ING cheer European stocks

Technology shares and better earnings prospects at Dutch insurer ING helped European stocks up on Friday, while hopes for strong jobs growth in the United States also supported. Orun Palit, a fund manager at AIG Private Bank said equity markets were trying to price in an above-consensus March U.S. non-farm payrolls number. Market talk now is for a 120,000 rise in the report, due at 1330 GMT. "We are at a crossroad," Palit said. "U.S. jobs data will decide which direction equities take...strong growth coupled with good first quarter earnings should give equity markets the boost they need." By 1100 GMT the FTSE Eurotop 300 index <.FTEU3> of pan-European blue chips was up 0.2 percent at 995.9 points and the narrower DJ Euro Stoxx 50 index <.STOXX50E> rose 0.4 percent to 2,832.3 points. Europe's third-biggest insurer, ING was a top performer, adding 1.9 percent after the group forecast 3.5 percent annual growth in the Dutch life insurance market until 2006.
ING said the economic outlook was improving, and that it planned to expand in Asia, even though rising global security risks were weighing on business. Technology stocks boosted by Thursday's news of earnings optimism at Swedish telecoms equipment maker Ericsson continued their week-long rally. Ericsson, Finnish peer Nokia and French rival Alcatel were all up between one and three percent.
NOTORIOUS REVISIONS
Futures on benchmark U.S. stock market indices showed Wall Street on a firm note after a strong finish on Thursday. Across Europe, London's FTSE <.FTSE> was up 0.3 percent, Paris's CAC <.FCHI> added 0.5 percent, Frankfurt's Dax <.GDAXI> rose 0.3 percent and Zurich's SMI <.SSMI> gained 0.4 percent. Traders expect the market to be quiet prior to the jobs report, but after its release they think the market could be volatile as they digest the outcome. Europe is worried in case a weak number starts another dollar sell-off against the euro which could further erode profit margins on European company exports to the United States. "Watch the revisions," said one trader at a German Bank. "These numbers are notorious for revisions...they could shock. There seems to be a move towards basic industries on the basis of more robust jobs and economic growth. Finland's Outokumpu inched up 3.1 percent to 20-month highs after the firm said stainless steel demand and market conditions had picked up this year and the production ramp-up at its massive Tornio plant was on track. Also boosted by gold at 16-year highs, London-listed BHP Billiton , Anglo American and Xstrata all tacked on around 2.0 percent.
FIRM FAVOURITES
Electronics giant Philips added 1.8 percent as investors applauded a new appointment at LG Philips Displays -- a joint venture with LG Electronics <066570.KS> -- which will ensure cost cutting and restructuring in the shrinking market for cathode-ray tubes continues. Favourites also included Deutsche Bank after Smith Barney upgraded the German bank to "buy" from "hold" and hiked the price target to 80 euros from 74 euros. Deutsche added 1.5 percent. Among other news Franco-German drugmaker Aventis was holding a supervisory board meeting and was set formally to invite Novartis into merger talks, but industry insiders said the Swiss group remains wary about a bid for Aventis. Shares of Aventis and Novartis were firm, but traders marked down French rival Sanofi-Synthelabo , which has made a hostile bid for Aventis. Elsewhere France's Renault was up 1.6 percent data after data showed its 44.4 percent-owned Japanese unit Nissan <7201.T> increased its March sales in the key U.S. market.///