Euroshares outlook -- higher after Dow gains, SAP in focus after Q1 figs

Euroshares outlook -- higher after Dow gains, SAP in focus after Q1 figs

	Published : Fri, 20 Apr 2007 07:28 By : Agencies Print this Story

LONDON (Thomson Financial) - Leading European exchanges are expected to go higher this morning, after the Dow shrugged off China rate concerns and posted a new record high prompting a rebound in Asia, dealers said.

Last night, the DJIA rose 4.79, or 0.04 pct, to 12,808.63 -- its sixth straight gain -- as upbeat economic data helped assuage concerns about the possible imapct if China GDP continues to grow at current levels.

The Standard & Poor's 500 index fell 1.77 to 1,470.73, a day after the S&P hit a 6 1/2-year high.

The Nasdaq composite index fell for the third straight session, amid still mixed news in the technology sector.

In Asia, the Nikkei 225 Index finished its morning session up 87.92 points at 17,459.89, while in Hong Kong the Hang Seng ended the half way point up 180.94 points at 20,480.65.

Oil prices were mixed in Asian trading hours in a market driven by healthy fundamentals and a focus on US refineries' return to production.

New York Mercantile Exchange's main oil futures contract, light sweet crude for delivery in May, was up 0.18 usd at 62.01 usd per barrel from 61.83 usd per barrel in late trading in the US overnight, when it had declined a hefty 1.30 usd. Brent North Sea crude for June delivery was down 0.37 usd at 65.57 usd per barrel.

The key focus in Europe today will be first quarter numbers from Software giant SAP.

Dealers say the numbers were largely in-line -- although there was some disappointment on the operating front -- and said shares could rally after recent selling.

'The results were in-line. After a disappointing fourth quarter and several negative events - they should be a relief to the market.'

SAP said first quarter operating profit rose 6 pct to 433 mln eur from 409 mln thanks to strong sales in the Americas and European regions.

The figure was below the 442 mln eur consensus of analysts forecasts.

First quarter software and software-related service revenue rose 9 pct to 1.519 bln eur from 1.388 bln eur.

The figure matched the 1.519 bln eur consensus of analysts forecasts.

Last night, Accor reported first-quarter sales a little ahead of market consensus and said both its services and hotels arms are benefiting from a 'favourable business environment' in the year to date.

All the group's activities saw organic growth in the period.

Sales were 1.887 bln eur in the first quarter, up 8.9 pct from 1.733 bln a year earlier, a figure adjusted to take disposals into account under IFRS reporting.

Analysts had expected sales in the period to come in at 1.864 bln eur, according to a consensus compiled by Thomson Financial.

Clarins unveiled first quarter sales a little short of market consensus as revenues were hit by the strength of the euro and amid weak US perfume activities.

Sales were 240.4 mln eur, up 0.9 pct from 238.3 mln eur, and were up 3.7 pct on a constant forex basis.

Analysts had expected sales in the period to come in at 247.15 mln eur, according to a consensus compiled by Thomson Financial.

Core beauty sales were up 6.5 pct at 167.0 mln eur and rose 9.3 pct on a constant forex basis.

In other news, ABN Amro remains in focus as Barclays has until today evening to wrap up exclusive talks with the Ducth Banking group and as

Royal Bank of Scotland Group, SCH and Fortis prepare to put forward their proposal next week.

Expansion said Barclays has decided to go it alone despite interest by BBVA and others to join its offer.

deborah.hyde@thomson.com

dlh/lam

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