European on the up after earlier investor gloom
Published 22/10/2015 | 02:30
European stocks had risen by mid-afternoon yesterday as ARM Holdings and Reckitt Benckiser Group gained on better-than-forecast results, outweighing declines among miners.
By mid-afternoon in Dublin, the ISEQ Overall Index was up 1pc, or 64.96 points, to 6,363.73.
The leaders at that stage on the Dublin index included packaging giant Smurfit Kappa, up 1.8pc to €24.84, and insulation group Kingspan, which rose 2.6pc to €21.90.
On the other side of the board, the laggards included bookmakers Paddy Power, down 0.3pc to €100.55 by mid-afternoon, and Ryanair, which slipped 0.5pc to €13.34.
The Stoxx Europe 600 Index added 0.3pc to 363.85 at 2:46pm in London, after earlier falling as much as 0.8pc.
The swings followed investor gloom prompted on Tuesday after data showing an improvement in the region's lending conditions damped the likelihood of further European Central Bank stimulus to spur the Eurozone economy.
Anglo American and Glencore led resource-related companies lower, erasing an earlier advance, amid slumping commodity prices.
ARM jumped 7.2pc after third-quarter revenue beat analyst estimates. Reckitt Benckiser climbed 2pc after raising its full-year growth target.
Credit Suisse Group lost 2.7pc after saying it will raise fresh capital.
"There's a lot of hope on the earnings season; we've had good surprises from some global companies, but the banks suffered from the volatile third quarter," said Dirk Thiels, head of investment management at KBC Asset Management in Brussels.
"Markets have relaxed a bit, but there's still a lot of jitters around global growth. We would need some comforting economic figures out of Asia and emerging markets to support investor sentiment.
"That will be a difficult one; demand out of China is only going in one direction."
Worse-than-expected Japanese trade data yesterday underscored the fragility of the world economy, while Chinese stocks tumbled amid uncertainty over valuations after the recent rally.
European shares have been trading within a tight band for the past two weeks.
The Stoxx 600 moved in a 12-point range in that time, with a measure tracking equity swings on course for its fourth-biggest monthly drop on record.
While stocks have rebounded from a low last month, they are still down 12pc since an April record amid concern that China's slowdown will derail the global recovery.
Analysts have cut their profit- growth estimates for 2015 to just 2.8pc.
Among shares supporting the Stoxx 600, Sky added 2.4pc after Rupert Murdoch's European pay-TV company posted a 6pc increase in first-quarter sales.