GLOBAL SHARES were little changed in choppy trading yesterday, with a European benchmark at a 15-month closing high as tension surrounding the euro zone’s debt crisis continued to ease.
While the FTSE, CAC, DAX and Stoxx Europe 600 indices all climbed, things did not go so well for the Dublin market, which fell 0.3 per cent.
The euro zone common currency rose to a five-month high against the yen, after Spain sold more debt than it planned and its funding costs fell, causing its bond yields to fall. This happened as views on the country, which hung onto its investment-grade credit rating earlier this week, improved.
DUBLIN
THE ISEQ closed down, dropping 10 points to 3,262.
Irish Continental Group and DCC were among the gainers, rising 2.98 per cent and 2.18 per cent respectively to finish at €18.33 and €22.30.
It was also a good day for index heavyweight and building materials giant CRH, which climbed 1.41 per cent to €14.35.
Losing were clinical trials firm Icon, which fell 9.3 per cent to €17.55, and Kerry Group, which dropped 2.47 per cent to €39.l6.
Exploration group Dragon Oil was also down, declining 3.31 per cent to €7.01.
LONDON
THE UK’S FTSE 100 index climbed for a fourth day, reaching a seven-month high, as EU leaders gathered in Brussels to tackle the region’s debt crisis.
Mining companies pushed the benchmark gauge higher in late afternoon trading, as shares of Kazakhmys and Rio Tinto Group rallied more than 2 per cent.
Man Group dropped the most in almost 11 months, after the hedge fund manager reported a 57 per cent increase in outflows.
SABMiller declined 2.1 per cent after sales fell short of estimates.
Mothercare surged 11 per cent to 257.25 pence, after the retailer reported a 0.3 per cent increase in second-quarter UK like-for-like sales.
The FTSE 100 index advanced 0.1 per cent to 5,917.05 at the close. Two shares rose for each that declined in the measure, which has gained 2.1 per cent so far this week, boosted by a pick-up in US housing and retail data.
The index has climbed 12 per cent from its 2012 low on June 1st.
The FTSE All-Share index added 0.1 per cent.
EUROPE
EUROPEAN STOCKS climbed for a fourth day as a measure of US manufacturing beat estimates, while investors awaited the outcome of a two-day summit of the EU’s leaders.
Wincor Nixdorf, Europe’s biggest maker of automated teller machines, rallied 11 per cent.
Nestle retreated 1.7 per cent as the world’s biggest food company reported nine-month sales growth that missed analysts’ estimates.
Remy Cointreau sank the most in 3½ years after France’s second-largest distiller posted an improvement in first-half sales that fell short of forecasts.
Akzo Nobel slid 4 per cent to €42.78 after the paintmaker booked a €2.5 billion writedown for its decorative coatings business. The company overestimated market growth, according to chief financial officer Keith Nichols.
The Stoxx Europe 600 Index added 0.2 per cent to 276.3 at 4:30pm in London, after earlier retreating as much as 0.3 per cent.
France’s CAC 40 gained 0.2 per cent and Germany’s DAX climbed 0.6 per cent.
US
STOCKS FELL yesterday, with technology stocks hit hard after Google disappointed investors with earnings results that were prematurely released during the trading day.
Google’s stock dropped 8 per cent to close at $695 after the Internet giant’s third-quarter results showed earnings and revenue fell short of forecasts. Trading of the stock was halted at 12:50pm and resumed at 3:20pm.
The slide in Google’s stock after the midday surprise was the biggest drag on the SP 500. Tech stocks suffered, with the SP 500 information technology index losing 1.53 per cent.
Shares of IBM, which disappointed investors a day earlier, lost 2.8 per cent to close at $194.96 and pull the Dow lower.
Travelers gained 3.6 per cent to $73.94 and gave the biggest boost to the Dow after the property and casualty insurance company posted record earnings.
Verizon Communications rose 2.4 per cent to $45.78 after reporting a record quarterly profit. It attributed these gains to its wireless business. It also posted revenue that slightly exceeded expectations.
Morgan Stanley reported better than expected adjusted quarterly earnings yesterday as big gains in its bond trading business boosted its revenue. The stock fell, however, losing 3.8 per cent.
After the close, Microsoft reported that its fiscal first-quarter profit fell, hurt by a dip in PC sales. Microsoft’s stock fell 1.2 per cent after the bell. It had closed at $29.50, down 0.3 per cent, in regular trading. – (Additional reporting: Bloomberg, Reuters)
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