Markets unmoved by corporate data

THERE WAS a flurry of corporate data capable of moving markets yesterday, but stocks were little changed at the end of the session.

Although a number of large European stocks, including Volkswagen, Shell, Unilever, Shire and Barclays, published earnings that beat analysts’ expectations, there were poor results from London-listed drugs firm AstraZeneca and Germany’s biggest lender, Deutsche Bank.

DUBLIN

The Irish market finished flat, down less than five points, with few stocks making major advances or suffering significant declines.

Titanium miner Kenmare closed down 4.7 per cent at 63 cent, while drinks group CC and building materials group CRH both finished down 0.9 per cent.

Food group Kerry, one of the busiest stocks on the day, closed up six cent at €34.01, while Ryanair also posted a modest rise, climbing two cent to €4.28.

Paddy Power rose almost 1 per cent to €48.05 on day when mobile gambling specialist Probability issued a positive fourth-quarter trading update.

DIY chain and builders’ merchants group Grafton advanced 1.4 per cent to €3.28, after Howden Joinery Group, which, like Grafton, operates in the UK, published an encouraging trading update despite a difficult market.

LONDON

The FTSE 100 blue-chip index notched up a third session of gains as investors digested results from major stocks. Advances in oil stocks outweighed a heavy fall in drugs firm AstraZeneca.

The index closed up 0.5 per cent after a choppy session, continuing its recovery following big falls on Monday.

Integrated oil stocks were the strongest blue-chip performers, adding almost 18 points overall to the index, led by Royal Dutch Shell, which unveiled an 11 per cent rise in fourth-quarter profit as higher oil prices outweighed the impact of lower US gas prices.

Shell shares gained 3.2 per cent, while BP added 2.8 per cent, and BG Group firmed 1.3 per cent, with both due to report their first-quarter results next week.

Well-received earnings also supported hotel operator Whitbread, up 6.2 per cent after posting a rise in full-year profit, and consumer goods giant Unilever, ahead 2.7 per cent after its first-quarter sales beat forecasts.

UK banking stocks ended higher after a volatile session as quarterly reports from some of Europe’s top lenders showed the scars of the euro zone crisis, but also strength in some investment banking divisions. Barclays added 0.9 per cent as its first-quarter results beat forecasts with a 22 per cent rise in underlying profit to £2.45 billion.

Drugmaker Shire rose 1.9 per cent after it posted a 20 per cent rise in first-quarter earnings, just beating market expectations, as its hyperactivity drugs continue to gain market share in the United States. GlaxoSmithKline rallied 0.5 per cent having fallen on Wednesday after its results missed forecasts.

AstraZeneca was the top blue-chip faller, dropping 6.1 per cent after it reported below-forecast first-quarter results and said its chief executive David Brennan is to step down. Britain’s second-biggest drugmaker cut its full-year profit forecast as sales fell 11 per cent, badly missing expectations.

EUROPE

Mixed corporate earnings and economic data left European shares largely unchanged. Worse-than-expected results by Deutsche Bank triggered some profit-taking on the Stoxx euro zone banking index, which gave away nearly a third of the gains accrued in the previous two sessions.

Also weighing on sentiment was data showing euro zone economic sentiment fell more than expected in April, driven by more pessimistic industry and services sectors. But European equities cut losses in the afternoon, when data showed pending home sales in the US rose to a near two-year high in March, fuelling hopes of a pick-up in the US housing sector.

German carmaker Volkswagen was among the top gainers, rising 8.7 per cent after reporting strong results thanks to sales in Asia, the US, Latin America and Russia, offsetting shrinking demand in western Europe and striking an upbeat note for the broader auto sector.

Strong sales in China and tourist purchases in the US and Europe helped luxury group PPR report a rise in first-quarter sales, boosting the stock 4.9 per cent.

NEW YORK

US stocks edged higher as another batch of positive earnings and a strong housing report put equities on track for a third straight day of gains. While most corporate results topped expectations, some high-profile misses, including from Exxon and Aetna, kept a lid on gains. Pending home sales rose to a near two-year high in March, but investors also had to contend with data showing a stumbling labour recovery as weekly initial jobless claims fell slightly but missed forecasts. With 254 companies S&P 500 companies reporting, more than 72 per cent have topped estimates, according to Thomson Reuters data. – (Additional reporting: Reuters)