Friday May 9, 08:01 AM
Euroshares outlook - lower after Asian losses; AIG, Allianz news weighs
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 (NASDAQ: news) 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 (TRI.TO - news) 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 (news) 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 (Xetra: 648300 - news) 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 (Amsterdam: AH.AS - news) 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.
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