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RTT News – Williamsville, NY, USA: Markets Likely To See Some Strength On Bargain Hunting – European Commentary

EXTRACT: Royal Dutch Shell may move on reports that a merger between any of the world’s biggest oil companies, such as BP and Shell, is unlikely.

7/12/2007 2:44:10 AM Thursday, the major European index futures are pointing to a lower opening. Nonetheless, buying interest may emerge as traders resort to bargain hunting following the sell-off of the past couple of sessions. The markets may also be encouraged by positive leads from Wall Street and the Asian markets. The price of crude oil remains unrelenting and may support the oil space.

On the economic front, major U.S. data scheduled for the day are the May trade balance and July initial jobless claims. In Europe, economic data awaited are the Euro-Zone first quarter GDP, May industrial production and European Commission GDP forecast.

The European markets fell on Wednesday, pulled down by banks on concern that mounting U.S. mortgage losses will hamper the world’s largest economy and slow down global economic growth.

The FTSEurofirst 300 index of pan-European blue chips closed 0.3% lower at 1,602.40 points, while the narrower DJ Stoxx 50 index fell 0.5% to 3,924.35 points. Around Europe, the U.K.’s FTSE 100 index fell 15.80 points or 0.24% to 6,615.10, while France’s CAC 40 slipped 18.13 points or 0.30% to 6,001.09 and Germany’s DAX index plunged 66.22 points or 0.83% to 7,898.54.

The dollar remained weak on account of US sub-prime worries. The euro hovered around its all time high of USD 1.3786, while the pound set a fresh 26-year high above USD 2.03.

Crude prices declined 25 cents on Wednesday to settle at US$72.56 a barrel on the New York Mercantile Exchange. In Europe, oil traded lower after the US reported a moderate rise in gasoline stocks. In Asian trades, oil is being quoted at $72.62, up 6 cents.

In Europe, gold was steady on Wednesday on weakness in the U.S. dollar. While Platinum prices rose, palladium was unchanged. Silver was relatively flat.

In the U.K., the stocks that may see some action are Cadbury Schweppes, GlaxoSmithKline, London Stock Exchange and Royal Dutch Shell. Cadbury Schweppes bought a Florida bottler to expand distribution in the southeastern U.S. Reports indicate that GlaxoSmithKline’s diabetes pill may not have the heart-attack risk linked to Glaxo’s similar drug, Avandia. London Stock Exchange clashed with Nasdaq Stock Market Inc., its biggest shareholder, at the annual investor meeting as the U.S. exchange voted against two resolutions to raise capital. Royal Dutch Shell may move on reports that a merger between any of the world’s biggest oil companies, such as BP and Shell, is unlikely.

The German stocks that are likely to rise or fall are Cropenergies, Fielmann, Fraport, Solon, Suedzucker, and TUI.

In the European region, the stocks that may see some action are Flughafen Wien, Kinepolis, OC Oerlikon Corp., Pirelli & C. Real Estate SpA, Roche Holding, Sulzer, Swatch Group and Tandberg.

http://www.rttnews.com/FOREX/EuroMkt.asp?date=07/12/2007&item=1

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