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Thursday, 27 October 2011 |
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Markets opened sharply higher in early deals
on Thursday, following news the EU reached headline agreement on Eurozone support measures. Burberry took the lead, injecting some hopes within the European fashion traded companies.
The news of a headline agreement on Eurozone debt management and Greek restructuring received an enthusiastic reaction from the markets this morning, although there are still some cautious words coming from the City ahead of a more detailed outline of the deal. Retailers made measured progress, with luxury brand Burberry the best of them, up 63p at 1,366p. Next added 30p at 2,587p and Primark owner AB Foods gained 14.5p at 1,109.5p, reported MarketWatch
However, European confidence in the economic outlook dropped to the lowest in almost two years in October as the region’s economic slump deepened and leaders struggled to contain a worsening debt crisis. An index of executive and consumer sentiment in the 17- nation euro area fell to 94.8 from 95 in September, the European Commission in Brussels said today. That’s the lowest since December 2009. Economists forecast a drop to 93.8, the median of 27 estimates in a Bloomberg survey shows.
Meanwhile, corporate releases continued this week, being PPR the last in posting its quarter results. The multi-brand group posted third quarter 2011 revenue of €3.9 billion, up 7.0% versus the same 2010 period on a comparable basis, and advanced in all geographic areas. As explained in a company’s statement, “This solid performance notably reflected the continued strong momentum of the Luxury Goods and Sport & Lifestyle businesses across all regions. Luxury Goods posted a 24.6% leap in revenue in the third quarter of the year, driving revenue growth for the first nine months of the year to 23.7%. Revenue recorded by the Sport & Lifestyle group came out 9.9% higher in third quarter 2011, pushing growth for the first nine months of the year to 9.6%.”
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