Euroshares advance midday as Dow seen up; on oil price fall, earnings news

Europe's leading exchanges made strong advances in midday deals as the Dow is set to rise in opening deals, and boosted by some upbeat earnings statements and M&A news.
At 12.09 a.m., the DJ STOXX 50 was up 50.99 points, or 1.81 percent, at 2,874.93 and the DJ STOXX 600 was up 5.22 points, or 1.88 percent, at 282.81.

Spread bettors IG Index said the DJIA looks set to rise 87 points in opening deals as falling oil prices help to allay concerns about inflation and the health of the world's largest economy.

As for Tuesday's Federal Reserve rate setting meeting, he said no change to rates is expected but the accompanying commentary will be a focus.

In Europe, Societe Generale (Paris: FR0000130809 - news) reported a 63 percent fall in second-quarter net profit on Tuesday to 644 million euros -- but well above the 518 million euros the market had been looking for.

Gross operating profit fell 42 percent to 1.627 billion euros, also ahead of an average forecast of 1.333 billion. Shares added 6.67 percent as analysts described the update as 'reassuring'. Credit Agricole (Paris: FR0000045072 - news) added 4.6 percent as analysts said the report was good news for SocGen's peers.

Standard Chartered (LSE: STAN.L - news) added 4.64 percent after the group's first-half results beat analysts' forecasts.

Barclays (LSE: BARC.L - news) stormed 7.22 percent higher after news that Swiss Re (Virt-X: RUKN.VX - news) agreed to buy the UK bank's life assurance arm for 753 million pounds to boost its Admin Re business in the United Kingdom.

And shares in the Swiss insurance group moved up 1.76 percent after it reported better than expected second-quarter numbers.

Shares in Franco-Dutch airline Air France (Paris: FR0000031122 - news) -KLM rose 7.01 percent after the airline operator announced a smaller than expected fall in net profit for its first quarter to June and maintained its full-year EBIT guidance at 1 billion euros.

Sales were slightly above forecasts and net profit was above consensus though in line with Cheuvreux's estimate, the French broker's analysts said in a note to clients.

Adidas (Xetra: 500340 - news) hiked its guidance for full-year gross margin -- a measure of profitability -- to more than 48 percent, compared with a previous forecast between 47.5 percent as the group reported better than expected second-quarter net profit. Shares added 7.3 percent.

Danish brewer Carlsberg (Copenhagen: CARLB.CO - news) climbed 13.95 percent amid widespread relief after it reported a better than expected set of second-quarter earnings. Lehman Brothers (NYSE: LEH - news) resumed coverage with an 'overweight' stance.

Diageo (LSE: DGE.L - news) added 2.45 percent after reports that Inbev (Brussels: INB.BR - news) could be interested in buying the group, although not immediately.

In other M&A news, Michael Page (LSE: MPI.L - news) climbed 33.08 percent as the group confirmed it has received an unsolicited approach from Adecco (Virt-X: ADEN.VX - news) , up 5.42 percent.

The Independent said on Tuesday morning (NASDAQ: TUES - news) the Swiss staffing group is preparing a bid of between 350-375 pence per share but the UK group said the offer was unsolicited.

Peers USG People, Hays (LSE: HAS.L - news) and Brunel added 6.03 percent, 15.03 percent and 4.03 percent respectively as some said Michael Page's apparent hostility to its suitor's approach opens up the possibility that Adecco will be forced to shift its affections elsewhere.

Oils fell as the price of crude dropped to a three-month low and back below $120 per barrel, as investors focused on rising OPEC supply and declining demand in the United States and Europe.

Future dated crude on the Nymex was $1.80 lower at $119.61 per barrel, well below the July 11 record high of $147.27 per barrel.

Total fell 1.75 percent, ENI (Milan: ENI.MI - news) was 0.86 percent lower and Repsol (Madrid: REP.MC - news) was down 0.25 percent.