European stocks climb after fall in US unemployment claims

European stocks climbed, with the benchmark Stoxx Europe 600 index posting the biggest four-day gain since early January, as a report showed unemployment claims in the US fell more than forecast. Traders said investors bought on market dips in expectation that the US Federal Reserve would keep its economic stimulus programme going.
DUBLIN
The Iseq closed up 0.6 per cent, in line with the fractionally positive performance of the major stock markets across Europe. Building materials group CRH finished the right side of flat on a relatively quiet day for the Iseq's biggest stock, closing at €16.71. It was a stronger day for industrial holdings group DCC , which finished at €27.99, up 3.1 per cent.

Ryanair closed up 1.5 per cent at €6.09, its gain mirroring a bounceback in the performance for airlines across Europe following earlier bird flu scares. Drinks group C&C also fizzled upwards, rising 2.1 per cent to €5, while insulation-maker Kingspan added 2.4 per cent to €9.62. Fruit distributor Fyffes fell 4.9 per cent to 66 cent, but volumes in the stock were light. Food group Ke rry was weaker, finishing down 1.9 per cent at €43.06, as investors switched out of defensive stocks such as those in the food industry towards more cyclical stocks.
LONDON
The FTSE 100 index rose for the fourth consecutive day, assisted by a surge in the share price of bellwether retailer Marks & Spencer and financial stocks, as well as the release of strong data on the US economy.

The FTSE 100 closed up 0.5 per cent, having extended gains in the afternoon after better- than-expected jobless claims data from the US. Mark & Spencer rose 4.3 per cent to 400.4 pence on double its average trading volume after the retail chain posted a smaller-than-expected fall in quarterly sales.

Basic resources stocks curbed gains on the FTSE, shaving off six index points as the sector succumbed to a bout of profit-taking after a 4.8 per cent gain in the previous three sessions, helped in part by strong Chinese imports data.

Leading the fallers was Russia-focused steelmaker Evraz , which dropped 11.4 per cent to 185.8 pence after reporting a surprise 2012 loss and cautioning on its outlook. Man Group jumped 6.8 per cent to 104.3 pence, the largest advance since September, while emerging markets fund manager Ashmore surged 13 per cent to 401 pence, the most since October 2008, after reporting strong asset inflows.
EUROPE
National benchmark indexes climbed in all of the 18 western European markets except Portugal. Axa climbed 1.6 per cent to €13.93 after the Paris- based insurer agreed to sell a US unit to Protective Life for $1.06 billion. Chr Hansen plunged 7.4 per cent to 196.5 kroner, the biggest drop since the world's biggest maker of dairy enzymes sold shares to the public in June 2010, after reporting second- quarter earnings that missed analyst estimates.
US
US stocks advanced in early trading, extending a rally in the Standard and Poor's 500 Index to a fourth day, as retailers climbed amid rising March sales and jobless claims dropped more than estimated. Jobless claims fell by 42,000 to 346,000 in the week ended April 6th, labor department figures showed in Washington.

There were strong gains for a trio of retailers. Ross Stores rose 7.3 per cent as the operator of clothing and home accessories stores beat sales forecasts. Limited Brands , owner of the Victoria's Secret chain, added 5.4 per cent as its March same-store sales gained 3 per cent, beating estimates. Rite Aid jumped 19 per cent after the drugstore chain reported its first annual profit since 2007.

Among technology shares, Microsoft and Hewlett-Packard lost more than 5 per cent, while chipmaker Intel retreated 2.6 per cent. – (Additional reporting: Bloomberg/Reuters)