Homebuilders BVS, TW, BDEV, PSN fall on broker downgrades

European equities markets were higher Monday on higher oil prices, positive earnings reports and on an expected Dutch rescue of ING (EuronextAMS: INGA; NYSE: ING), in which the government will buy non-voting shares of the bank and insurance group and appoint two members to ING’s board of directors.

In London, the FTSE 100 added 5.41 percent to 4,282.67 while the FTSE 250 gained 1.4 percent to 6,399.45.

Homebuilders were lower on the 250 on broker downgrades to “sell” within the sector as Bovis Homes (LSE: BVS) was down 10.64 percent, Taylor Wimpey (LSE: TW) fell 12.5 percent, Barratt Developments (LSE: BDEV) was 12.65 lower and Persimmon (LSE: PSN) dropped 15.74 percent.

Gains came as most banks were higher and the oil and mining sectors saw advances, while insurers were mixed.

The Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM) added 23.18 percent and insurer Prudential (LSE: PRU; NYSE: PUK) gained 22.31 percent.

The FTSE Eurofirst 300 added 3.75 percent to 928.29 as the Dax was up 1.12 percent, the IBEX was 2.99 percent higher to 9,944.3 and the CAC-40 gained 3.56 percent to 3,448.51.

Swedish telecommunications group Ericsson (OMX: ERIC B; NAS: ERIC) added 16 percent after it reported net income of 2.8 billion Swedish kronor ($380 million), ahead of estimates.

Despite gains overall, there were big losses on both the CAC-40 and the Dax.

Companies with interests in waste management lost in Paris, where Suez Environment (Euronext: SEV; EuronextBRU: SEVB) was down 7.39 percent and Veolia Environment (Euronext: VIE; NYSE: VE) dropped 21.31 percent for the worst day on the CAC-40, while Volkswagen (FWB: VOW) was the worst performer on the Dax as it dropped 22.6 percent.

Most equities markets in the Asia-Pacific region were also higher after South Korea said it will make $30 billion in US dollars available to banks there and give tax benefits to long-term equities investors while the Reserve Bank of India cut interest rates for the first time in four years, from 9 percent to 8 percent.

The cut in Indian interest rates, coming after the International Monetary Fund said that India’s economy could grow by only 7.9 percent this year and by only 6.9 percent in 2009, was seen as a sign that Bank officials believe that inflation is less of a threat to the economy there than slowing growth.

India’s Sensex was up 2.48 percent to 10,223.09 on the session.

In Tokyo, the Nikkei 225 added 3.59 percent to 9,005.59 while the Topix index was 3.7 percent higher to 927.37 and the Mothers market gained 4.72 percent to 325.42 in lighter than average trade.

The gains in Japan came on hopes that profits reports will be better than expected and despite statements from both the Japanese government and the Bank of Japan which contained reduced assessments of the state and direction of Japan’s economy.

Lower prices for raw materials sent tire makers and the steel sector higher, with the steel sector further helped by the chance that two big steel producers there could soon revise pretax profits estimates higher on lower materials and fuel prices and gains in steel prices.

The pharmaceuticals sector gained on its reputation as recession-proof while a weaker yen helped out exporters in the automobile manufacturing and electronics sectors.

Elsewhere in the region, the Shanghai Composite was up 2.25 percent to 1,974.01 while the Kospi added 2.28 percent on the bank rescue plans by the South Korean government and the Straits Times Index was 3.23 percent higher to 1,939.22.

In Australia the Sydney Ordinaries added 3.9 percent to 4,098.7 and the S&P/ASX200 was up 4.32 percent to 4,142.3 while the Hang Seng gained 5.28 percent to 15,323.01.

In Taiwan, the Taiex dropped 0.58 percent to 4,931.84.

Wall Street closed higher, with the Dow Jones Industrial Average up 4.67 percent to 9,265.43 while the Nasdaq Composite added 3.43 percent to 1,770.03 and the S&P 500 dropped 4.77 percent to 985.4.

Gains came after remarks from Fed Chairman Ben Bernanke in support of another stimulus package and on some quarterly reports that were better than expected.

Halliburton (NYSE: HAL) was up 13.91 percent at the close after reporting operating income above $1 billion, even though a debt settlement produced a debt loss for the oil field services provider.

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