LONDON -- Stock markets are mixed in Europe Tuesday, with peripheral countries seeing a more upbeat session than their counterparts in the core EU. Yesterday's Labor Day holiday leaves many investors waiting to see how the U.S. markets open today, with hopes that they will catch up with the rally in European stocks at the start of the week. Meanwhile, all eyes are on the manufacturing report coming from the U.S. in hopes of an economic recovery, given last week's poor numbers from Asia and the EU. So far futures trading is offering little insight into the U.S. markets, with the S&P 500
Nevertheless, there are still a number of companies suffering sharp losses. Here are three American depositary receipts the S&P should beat today.
In a move counter to its new joint-venture partner, Telefonica
The pharmaceutical giant is down almost 2% today after it said it plans to buy back up to $152 million worth of contingent value rights, linked to its purchase of Genzyme in 2011. CVRs are a tradable security that gives payouts to Genzyme investors if certain revenue targets are met, and this latest news of a buyback indicates Sanofi's growing confidence in Genzyme's multiple sclerosis drug Lemtrada. The company said it would purchase the CVRs for between $1.50 and $1.75 each -- a premium of between 7% and 25% of their market value, though still far below the $2.40 price tag at issuance.
Deutsche Bank is down around 1.5% today after co-CEO Juergen Fitschen said profit margins in Europe's banking industry will remain under pressure. The comments, which many see as specifically reflecting the prospects of DB itself, suggest that the sovereign-debt crisis is curbing client activity in the banking sector, while at the same time, competition is increasing. Fitschen, speaking at a banking conference in Frankfurt today, said low margins and higher capital requirements are "the new normal" and warned that the industry cannot rely on the assumption that dramatic growth opportunities will solve its problems in a swift and timely fashion.
As usual, this morning's European trading saw some stocks lose ground -- and perhaps provide some European buying opportunities. Indeed, legendary investor Warren Buffett has recently spent more than $1 billion buying a European large-cap stock that's currently trading well below its 2012 high. If you want to know what Buffett has bought within Europe, this special Motley Fool report -- "The One European Share Warren Buffett Loves" -- reveals everything, including the price he paid. You can download the report today for free, but hurry -- it's available for a limited time only.
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Karl Loomes does not own any share mentioned in this article. Motley Fool newsletter services have recommended buying shares of Vodafone Group. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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