Investors hoping for Chinese stimulus
Investors eyes turned to Spain and China yesterday after stocks routed on Wednesday. But European bourses remain nervous with no clear roadmap to help economies recover.
There were glimmers of hope yesterday amid some worrying signs. Data from China showed that profits at the country's industrial firms fell for a fifth month in a row during August. That raised concerns that the nation is headed for a seventh quarter of economic slowdown.
"The market is higher on speculation that China will announce a large stimulus package after China National Day on October 1," said Stephane Ekolo, chief European strategist at Market Securities in London.
In Spain, the government managed to pass its tough 2013 budget. But an index of executive and consumer sentiment in the euro area dropped to 85 from 86.1 in August, the European Commission said.
In Ireland, the ISEQ Overall Index closed the day virtually unchanged after adding some gains earlier in the afternoon. It ended the day just 3.61 points, or 0.1pc higher, at 3,272.34. It was a slower day on the corporate news.
Food group Aryzta managed to regain some of the ground it lost earlier in the week when it released annual results that disappointed investors. It gained just under 1pc yesterday, or 36 cent, to €37.66.
Shares in Bank of Ireland closed higher after tumbling 7pc on Wednesday. They advanced 3.2pc, or 0.3 cent, to 9.6 cent.
Ryanair also rose, climbing almost 1.5pc, or 6.4 cent, to €4.45 as the European Commission said it wanted to ink agreements with countries such as Ukraine, Tunisa and Egypt to open up air traffic between them and the EU. It also wants to loosen airline ownership rules.
Shares in mining minnow Ormonde added 2.5pc to 8 cent after it said it made progress on its Spanish tungsten operation.
Decliners yesterday included Providence Resources, which shed 2.3pc, or 20 cent, to €8.40, while mining firm Kenmare Resources declined 3.3pc to 49 cent.
The UK's FTSE-100 gained 0.2pc yesterday, while Germany's DAX added 0.19pc and France's CAC-40 rose 0.7pc. Spain's IBEX lost 0.1pc, while Athens's ASE declined 1.7pc.
Volkswagen lost 2.1pc to €143.30. The carmaker said that European car sales would fail to recover next year.
France's Credit Agricole advanced 3.9pc, to €5.49, after saying it may soon sell its Emporiki Greek unit.
Greece's gambling monopoly Opap jumped 3pc, to €4.17, after Greece's Hellenic Republic Asset Development Fund published calls for expressions of interest for the government's stake in the company.
Hennes & Mauritz, Europe's second-largest clothing retailer, slid 5.8pc to 232.20 kroner.