Europe's main stock markets rose further on Wednesday,
boosted by gains in Asia and overnight on Wall Street, as investors assessed global debt concerns. International indexes mirrored the trend, closing in green and expectant to Thursday´s meeting to solve Greek debt.
Stocks rose despite heightened warnings on Wednesday from the European Commission president and from France of the importance of reaching a deal on Greek debt at a eurozone summit on Thursday. Thus, London's FTSE 100 index of top shares rose 0.85 percent to 5,839.90 points in late morning trading while German DAX 30 edged up 0.12 percent to 7,201.30 points and in Paris the CAC 40 index climbed 1.10 percent to 3,735.87.
In France, Hermes raised forecasts for revenues this year amid growing demand for its scarves, accessories and leather bags, in a reminder of the luxury goods company's attraction for rival LVMH, whose advances Hermes is trying to fend off. Speculation on Bernard Arnault, LVMH's controlling shareholder and France's wealthiest man, is intent on buying Hermes has sent its shares soaring nearly 50 per cent since April, despite LVMH saying it has no plans to make a bid. Hermes forecast a 12-14 per cent rise in consolidated revenue at constant exchange rates for 2011, ditching its previous range of 8-10 per cent after a better-than-expected performance in the second quarter.
Across the Atlantic, stocks stuck close to the breakeven line, lifted by heavy corporate earnings and lackluster data pulled investors in opposite directions.
Polo Ralph Lauren became the star in Wall Street despite closing Monday's negative trading session at $134.54. In the past year, the stock has hit a 52-week low of $71.39 and 52-week high of $140.29. Polo Ralph Lauren´s stock has been showing support around $132.49 and resistance in the $137.19 range. S&P gives Polo Ralph Lauren a very positive 5 STARS (out of 5) strong buy rating. Polo Ralph Lauren First Quarter Fiscal Year 2012 Results will be released next Wednesday, August 10, 2011.
Goldman & Sachs strategists recommend "buying strangles on companies with share prices over $100 ahead of earnings saw positive returns in 11 of 15 years and five of the past eight quarters." Polo Ralph Lauren was among their preferred shares this week, as its expected average value in August would be around $135.
World Street Fundamentals explain in its last market research that due to a weakened economy and higher unemployment rates, lackluster discretionary income growth could cause irritability in the apparel and accessories demand. Accessories and differentiated fashion continue to outperform the category, but at a slower pace. Strong luxury brands are estimated to rebound extending throughout 2011, reflecting core luxury shoppers. Initial markups have expanded modestly as retailers' ability to source goods at lower prices has improved. Information technology has enabled retailers to apply science to markdowns, resulting in improved merchandise margins. It is believed that companies with strong brands, differentiated products, superior customer service and attractive price-value propositions are likely to outperform their peers.