Most markets across Europe are expected to open stronger on Tuesday morning, extending the rally from yesterday.
In the U.S, on Monday, the Dow closed up 497 points or 6.84% at 7,776, the Nasdaq gained 99 points or 6.76% to 1,556, and the S&P 500 advanced 54 points or 7.08% to finish at 823, after the Obama Administration unveiled plans to help banks sell toxic assets and pave way for a revival of the economy, through increased credit flow.
The European markets rose for the third day on Monday, as investors cheered the U.S. government's plan to help banks remove as much as $1 trillion in bad assets from their books and a report showing a surprise increase in U.S. home sales.
The FTSEurofirst 300 index of pan-European blue chips closed 3.01% higher at 739 points, while the narrower DJ Stoxx 50 index rose 3.61% to 1,829 points.
Around Europe, the U.K.'s FTSE 100 index climbed 2.86% to 3,953, while France's CAC 40 index surged up 2.81% to 2,870 and Germany's DAX index rose 2.65% to 4,176.
In Asia, all the markets reacted positively and ended in the green, led by financials, on expectations that the U.S initiatives will help restore stability in the global banking sector and unclog the credit markets. In Japan, Nikkei-225 rose more than 3% during the day and advanced more than 20% since reaching a 26-year low on March 10.
On the economic front, composite Purchasing Managers' Index reports from France, Germany and Eurozone, Current account details from Eurozone, and U.K. consumer price data from the Office for National Statistics are the major ones that might impact the markets.
On the corporate front, the largest retailer in Germany Metro AG may be in focus after the company reported lower profit for the quarter on slumping consumer demand.
Barclays Bank Plc announced that it is contemplating to increase the investment banking staff two-fold in Japan over the next 2 years after rival company Credit Suisse announced plans to trim its headcount in Japan.
Insurance stocks see activity across the region after Swiss Life Holding AG, the largest insurance company in Switzerland, announced that it would sell 9.9% stake to Germany's Talanx AG. Talanx AG is also likely to purchase a 8.4% stake of MLP AG, presently held by Swiss Life Holding.
Ferrexpo PLC (FXPO.L) announced that profit for the year ended 31st December 2008 attributable to equity shareholders increased to US$292.44 million or 48.46 cents per share, compared to US$124.08 million or 20.33 cents per share a year ago. Profit before taxation rose to US$375.58 million from US$160.76 million in the previous year. Underlying earnings were US$347.43 million or 57.58 cents per share, higher than US$151.72 million or 24.86 cents per share last year. Revenue for the year was US$1.12 billion, up from US$0.7 billion in the prior year.
ARC International (ARK.L) said it signed new license agreement with Boston Scientific Corp.(BSX) As per the terms of the agreement, Boston Scientific will use the new license in ultra-low power integrated circuits for implantable cardiac rhythm management device applications.
Motivcom Plc.(MCM.L) announced that profit for the year ended 31 December 2008 was £1.51 million or 4.95 pence per share, compared to £2.33 million or 8.63 pence per share in the prior year. Profit before tax for the year decreased 37% to £2.09 million, from £3.31 million in the previous year. Headline operating profit increased 1% to £3.34 million, from £3.31 million last year. Headline profit before tax decreased 14% to £2.87 million, from £3.35 million in the previous year. Headline basic earnings per share decreased 24% to 6.89 pence, from 9.02 pence in the prior year. Revenues for the year increased to £110.49 million, from £85.70 million in the prior year.
De La Rue Plc (DLAR.L) said that fourth-quarter trading was in line with expectations. The currency activities remained strong, with the continued strength of the order book providing good visibility. In security products, identity systems and cash processing solutions also, trading has been in line with the company's expectations and the order book in each of these businesses remained strong.
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