Upbeat US jobs data boosts markets

BETTER-THAN-EXPECTED economic data from the US helped lift markets across Europe yesterday, as upbeat jobs figures in the US pointed to an improving economic outlook.

DUBLIN

Providence Resources and its latest discovery was the big story on the Irish market yesterday. Not only did it find the first commercially viable oil-flow in Ireland, but its flow rate is almost double its pre-drill target.

On the back of this news, the stock soared by as much as 20 per cent at one point, before easing off a little to close up by 61 cent, or 11.8 per cent, at €5.76.

Pharmaceutical stock Elan continued its strong performance yesterday, adding 72 cent, or 7.4 per cent, to finish up at €10.44.

Bank of Ireland was strong again on the day, although in lighter volumes than Wednesday. It added 3.1 per cent to advance to €0.14.

CRH was also up on the day, helping the Iseq to add 1 per cent. It gained 31 cent, or 1.9 per cent, to finish up at €16.68.

Both Glanbia and Grafton Group pulled back a little yesterday, with Glanbia giving up 15 cent, or 2.6 per cent, to fall back to €5.70.

Grafton lost 5 cent, or 1.5 per cent, to close down at €3.28.

Paddy Power failed to get a bounce from Cheltenham yesterday, and it ended the day largely flat, at €46.70, up by 15 cent or 0.3 per cent.

Similarly, Ryanair failed to take flight yesterday. It closed at €4.287, down by 0.07 per cent.

LONDON

The FTSE 100 Index closed 4.7 points lower yesterday, despite the boost given to markets by better-than-expected unemployment data from the US, as rating agency Fitch said that the UK risked losing its top credit grade.

Supermarket chain Tesco was among the biggest fallers as chief executive Philip Clarke’s decision to take on the UK role currently held by Richard Brasher fuelled nerves over trading this year in the wake of a profits warning two months ago.

Independent retail analyst Nick Bubb said it was not a good sign for the business when the chief executive has to “micromanage” the UK operation.

The stock closed down by almost 1 per cent, 3.1p lower at 321.8p.

Next jumped on the back of a price target increase from Bank of America Merrill Lynch.

It rose by nearly 3 per cent, or 74p, to 2901p.

The drop in oil prices yesterday hit Cairn Energy, as it fell off by 4.9p to 331.4p, while BP slid more than 1 per cent, or 6.5p, at 620.5p.

EUROPE

Across Europe, markets rose for a third day. The Stoxx 600 rose by 0.3 per cent to 270.98 at the close of trading, after swinging between gains and losses at least 20 times.

In Frankfurt, the DAX advanced by 0.9 per cent, while in Paris, the CAC 40 climbed by 0.4 per cent.

“We’re getting some positive economic news from the US,” said Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd, adding: “Markets have come a long way in a short space of time and the scope to move considerably further upwards at this point in time is very limited”.

Europe’s second-largest clothing retailer, Hennes and Mauritz, advanced by 2.4 per cent to 249.60 kronor after it reported an unexpected gain in sales, after comparable sales advanced by 2 per cent in February from a year earlier.

HeidelbergCement, the world’s third-largest maker of cement, climbed by 5.1 per cent to €44.57, after it predicted operating profit and sales would rise this year on growth in Asia and Africa and a weaker increase in raw material and energy costs.

Pernod-Ricard slid by 2.1 per cent as Groupe Bruxelles Lambert sold a €499 million ($651 million) stake.

US

The S&P 500 rallied past 1,400 for the first time since 2008 yesterday, supported by a brighter outlook on the US economy.

New claims for jobless benefits fell to a four-year low last week, while surveys from regional Federal Reserve banks showed gains in manufacturing in New York and a pickup in business conditions in the US mid-Atlantic region.

Earlier in the week the US Federal Reserve offered a cautiously optimistic view of the economy’s prospects.

“[The 1,400 level] is important because of the trend – it confirms the upward bias in the market, said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

“There is a built-in momentum trend as a result of the economic data,” he added.

Technology stock Apple surpassed the $600 level for the first time yesterday. At the close the Dow Jones industrial average was up 58.66 points, or 0.44 per cent, at 13,252.76.

The S&P 500 was up 8.32 points, or 0.60 per cent, at 1,402.60 , while the Nasdaq was up 15.64 points, or 0.51 per cent, at 3,056.37 .

– (Additional reporting: Reuters/Bloomberg)