European Shares to Open Higher Ahead of U.S. Economic Reports - European Commentary

6:43 GMT

May 2008

(RTTNews) - Futures are indicating a higher open for the major European indexes Friday as the region looks to carry on the rally in equity prices that has been seen in the U.S. and Asia.

Shares in the Asia Pacific region gained in overnight trading. Japan’s Nikkei 225 was flat on the day, but Australia’s S&P/ASX 200 rose by 0.7%, in part on speculation that the Chinese government was mulling a major investment in mining firm BHP Billiton.

Oil prices have risen in early Friday trading as investors expect Chinese demand to keep prices high. A barrel of light sweet crude, which fell below $121 on Thursday, is now trading near $125.

The euro has risen against the U.S. dollar in early Friday trading. The gains come as traders await a number of U.S. economic reports including one on consumer confidence and one on housing starts. Both figures are expected to show further problems in the U.S. economy.

In corporate news, British Airways posted its earnings for the year ending March 31, 2008 on Friday. The firm said that operating profit totaled ï¿½875 million, up from ï¿½602 million in 2007. Revenue for the year grew by 3.1% to ï¿½8.75 billion.

Utility operator British Energy Group confirmed Friday that it has received a number of takeover bids after it effectively put itself up for sale a few weeks ago. Though it didn’t specify the substance of the offers, the firm said that it is considering the proposals and will make an announcement as to the company’s future due course.

Belgian telecoms firm Belgacom reported a profit of EUR 236 million for its first quarter, down from EUR 319 million last year. The company also announced that it was on track to meet its profit and revenue guidance for the year.

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