LONDON (Thomson Financial) - Leading European exchanges look set to open
lower after Asian losses as record oil prices sparked new inflationary concerns
and after disappointment from AIG and Allianz weigh on sentiment.
In the US overnight, Wall Street closed a quiet session with a moderate
advance, with energy and other commodity companies leading the market as oil
prices extended their record-breaking run.
The DJIA closed up 52.43 to 12,866.78. Separately, the S&P 500 index rose
5.11 to 1,397.68, and the Nasdaq composite index gained 12.75 to 2,451.24.
At the close of trade AIG reported a much larger than expected quarterly
loss.
It said first-quarter adjusted net loss of $3.56 billion, or $1.41 a share,
compared with adjusted net income of $4.39 billion, or $1.68 a share, in the
same period a year ago.
The mean estimate of analysts surveyed by Thomson Reuters was for a loss of
76 cents a share.
The group said it hopes to raise $12.5 billion in new capital.
And there was more disappointment in Asia, with earnings numbers from Toyota
and Mitsui Chemical weighing on sentiment.
The Nikkei 225 index fell back 227.33 points at 13,715.93, while the Hang
Seng index ended the morning 411.73 points lower at 25,038.06.
Also in Asia, crude oil traded near new all-time highs above $124 a barrel
on Friday even after the OPEC cartel insisted the market is well-supplied and
being driven by speculators.
Analysts said OPEC's view has already been factored into prices.
Back in Europe, German insurance giant Allianz said it will be hard to
achieve its mid-term targets in the current environment, adding to the gloom
among insurers.
But it wasn't all bad news.
Shares in Linde AG look set to outperform in opening deals after the
chemical group's solid first-quarter figures, the industrial gas giant reported
Friday morning.
"So far the reported figs, except sales, are better than many expected,"
said a Frankfurt-based trader in response to the numbers.
"The statements regarding 2008 and mid-term optimistic view should help the
stock here," the trader added saying that from a technical trade standpoint he
sees the next resistance barrier at 96.50 euros per share.
Dutch supermarkets group Ahold reported first-quarter sales at the upper end
of analysts expectations and a stronger-than-expected rise in sales at constant
exchange rates, with performance helped by favourable market conditions in
Europe.
In a trading statement the company said sales fell 1.3 percent to 7.538
billion euros.
Analysts had forecast first quarter sales in the range of 7.255 billion
euros to 7.600 billion euros, with same-store sales at constant currencies seen
up between 3.8 and 5.9 percent.
deborah.hyde@thomson.com
dlh/sal
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