Equities up as AkzoNobel earnings top estimates

Eurostoxx 50: 2,936.30 (+14.87) Frankfurt DAX: 7,295.49 (+46.30) Paris CAC: 4,021.88 (+17.26)EUROPEAN STOCKS rose for a third day yesterday, extending the benchmark Stoxx Europe 600 Index's weekly gain, after earnings from AkzoNobel to Apple exceeded analysts' estimates.

The Stoxx 600 advanced 0.5 per cent to 280.47 in London. The gauge has risen 1 per cent this week after results from Intel to PSA Peugeot Citroen and L’Oreal spurred investor optimism in the economic recovery.

European markets will be closed for a holiday today.

“Better than expected earnings do give confidence the recovery is accelerating, especially when companies lift their guidance for the next quarter,” said Markus Huber, head of German sales trading at ETX Capital in London.

“Accelerating economic growth should be able to overcome the rise in commodity prices and be moderately impacted,” he said.

AkzoNobel jumped 4.1 per cent to €52.53, the highest price since June 2008.

That topped the average analyst estimate of €104.7 million, based on 12 estimates compiled by Bloomberg.

William Hill surged 7.1 per cent to 212.6p, the largest advance in three months.

Autonomy posted the biggest rally in the Stoxx 600, rising 7.4 per cent to 1,619p.

Banking shares rose 1.4 per cent as a group, the biggest gain among 19 industries in the Stoxx 600.

HSBC, Europe’s largest bank, gained 0.9 per cent to 657.7p.

BNP Paribas, France’s biggest lender, advanced 1.9 per cent to €51.52.

UniCredit rallied 4 per cent to €1.68, ending the longest falling streak since January.

Lafarge gained 1.7 per cent to €47.18 as the cement maker was raised to “buy” from “neutral” at Goldman Sachs.

CRH climbed 4.1 per cent to €16.48 after the second-biggest building-materials maker was also upgraded by Goldman Sachs.

Dragon Oil soared 4.2 per cent to 569p after the explorer focused on Turkmenistan said it plans to increase production by 20 per cent this year, more than previously forecast, on new pipeline infrastructure.

KPN tumbled 8.4 per cent to €10.76s, the biggest decline since October 2008.

Accor, Europe’s largest hotel company, sank 3.6 per cent to €30.32. – (Bloomberg)