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Market Update : 
European Shares Suffer Dollar Weakness
Author: Elena Todorova
123jump.com
Last Update: 1:05 PM EST November 30 2006


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European stock markets finished in the negative territory Thursday, pressured by weak U.S. manufacturing data which added to the continuous weakness of the dollar.The weaker U.S. currency hurt exporter issues like automakers and technology stocks. Car maker Volkswagen slipped 3.8%, while electronics conglomerate Philips Electronics lost 0.9%. The French CAC 40 led decliners, falling 1%, followed by the German DAX 30, down 0.9%, and London FTSE 100, down 0.6%.

 
Limited Brands Inc. (LTD: chart) reported November same-store sales increase of 12%, exceeding estimated figure of 7.8%. Target Corp. (TGT: chart) said that its November sales at stores open at least one year rose 5.9%, slightly above expectations of 5.7% increase. Total sales for the month rose 11.7% to $5.12 billion.

Nordstrom (JWN: chart) said Thursday that November same-store sales rose 5.4%, meeting analysts'' average estimate. Total sales gained 6.1% to $749.4 million.

Costco Wholesale Corp., (COST: chart), warehouse retailer, reported November same-store sales up 5%, slightly below estimates of 5.7%. Costco same-store revenue in November rose 4% in the U.S. and 10% internationally. Company’s total sales climbed 9% to $4.84 billion. Comparable-store sales for the 13 weeks through Nov. 26 climbed 4%, while total sales rose 8% to $14.99 billion. Bebe ((BEBE)0, women’s-wear retailer, also fell short of estimates, with same-store sales that were up 5.8% below the 7.9% expected

Wal-Mart (WMT: chart) said Thursday its November sales at U.S. stores open at least one year fell 0.1%. Analysts had been expecting the retailer to post flat same-store sales numbers. Total sales for the four weeks rose 11.9% to $28.57 billion from $25.53 billion. The world''''s biggest retailer projected flat to 1% higher comparable store sales in December.

Ann Taylor Stores Corp. (ANN: chart), women''''s clothing retailer, announced its November same-store sales fell 4.3%, down from the expected drop of 2.3%, blaming unusually warm weather for the season. Net sales rose 2.1% to $186.4 million. The Gap (GSP: chart) reported on Thursday that November same-store sales fell 8%, lower than the forecast for a drop of 5.4%.


7:30AM Asian markets gain on Thursday, tracking strong US close overnight.
Asian markets finished higher on Thursday. The Nikkei 225 Average finished the day 1.2% higher at 16274.33. Among banking stocks, Mitsubishi UFJ Financial Group rose 2.1%, Sumitomo Mitsui Financial Group climbed 3.4% and Mizuho Financial Group ended 1.4% higher. In the auto sector, Toyota gained 1.3% and Honda advanced 2.2%.

The Hang Seng Index in Hong Kong rose 1% to close at 18960.48. Advancers included Yue Yuen Industrial Holdings, which rose on news that it agreed to raise its stakes in two units for $6 million. Shares of the world largest sports shoe maker closed 7% higher.

South Korean Kospi Index gained 0.7% to 1432.21. Samsung Electronics gained 1.4% and Hynix Semiconductor rose 0.7%. Brokerage shares rose on a foreign and institutional buying spree on expectations for the broader market next year. Samsung Securities advanced 1.5% and Daewoo Securities jumped 3.4%.

Shanghai Composite Index soared 2.2% to finish at 2099.29. Baoshan Iron finished 5.9% higher. Australian S&P/ASX 200 increased 0.5% to 5482.10. BHP Billiton saw a solid rise of 1.5% and Woodside Petroleum rose 2.9%, both stocks benefiting from higher oil prices.


6:30AM European shares rise in early trading Thursday as oil prices advance.
European markets were higher on Thursday. The U.K. FTSE 100 index advanced 0.3% at 6,100.50, the German DAX Xetra 30 index climbed 0.2% at 6,375.28, and the French CAC-40 index rose 0.1% at 5,388.28.

Advancers

BHP, the biggest mining company in the world, added 2.1%. BHP said yesterday that demand for metals is strong and it may look for takeover targets. Rio Tinto, the third largest, gained 2.3%. Aluminum and zinc prices rose in London today and gold headed for a second straight monthly gain.
Oil companies Royal Dutch Shell and BP rose more than 1%, and shares in mining companies Xstrata and Antofagasta also traded more than 1% higher.

Sportingbet shares rose 4.3% on Thursday, as the online gambling company recovers from an 88% year-to-date share price decline on a ban in taking payments from the United States. Also, Prudential shares rose 1.2% after it was upgraded to buy from hold at Citigroup, saying that by 2010 it is free cash yield will be well above its U.K. peers, at 7.1% compared to 5.5%.

Decliners

Danone shares traded down 1.1% in Paris after a strong recent run. U.K.-headquartered home improvement retailer Kingfisher lost 2.1% after producing sales figures that showed continued weakness in U.K. operations.

Oil and gold

Crude oil for January delivery was at $62.40 a barrel, down 6 cents, in after-hours electronic trading on the NYME. Gold for immediate delivery in London rose as much as $1.73, or 0.3%, to $638.38 an ounce and in early trading was at $637.90.

Currencies
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