Sunday 25 September 2016

European stocks up amid good earnings

Bloomberg/Colm Kelpie

Published 14/08/2015 | 02:30

Pictured are Eugene Murtagh and Gene Murtagh, CEO, Kingspan Group plc
Pictured are Eugene Murtagh and Gene Murtagh, CEO, Kingspan Group plc

European shares rose yesterday on the back of rises by Nestle and TUI, which rallied after reporting earnings.

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By the close in Dublin, the ISEQ Overall Index was up 1.97pc or 125.39 points to end the trading day at 6,501.75.

The leaders on the Dublin market included packaging giant Smurfit Kappa, which rose 3.7pc to €27.02, and insulation group Kingspan, which increased 1.8pc to €22.70.

On the other side of the board, the laggards included insurance group FBD, which was down 6pc at the close to €6.44 amid a report that the insurer could need a capital injection of up to €100m to meet new solvency rules.

Speciality baker Aryzta was down 1.2pc to €46.16.

Elsewhere, the Stoxx Europe 600 Index gained 1pc to 386.69 at the close of trading in London, with about 80pc of its members advancing. It rallied as much as 1.9pc, also helped by a rebound in shares that slumped the most after China's currency devaluation.

LVMH Moet Hennessy Louis Vuitton rose 2.9pc after sinking 11pc in two days.

Carmakers advanced following their biggest plunge since 2011.

The Stoxx 600 tanked 2.7pc on Wednesday, closing at a one-month low on concern the region's exporters would suffer from China's currency devaluation. "Markets can move on from scares like China very quickly," said Daniel Murray, London-based head of research at EFG Asset Management.

"There's still some attractive features of the European market, with a much better growth environment and with corporate profits finally picking up. The European sell-off was just part of a broader, risk-aversion reaction."

On corporate news, shares of the world's largest food company climbed 2.7pc, the most since January, after it reported that first-half sales increased more than analysts had estimated.

Irish Independent

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