European stocks rise on positive Nestlé results

Eurostoxx 50: 2,919.05 (+1.33) Frankfurt DAX: 7,177.50 (+30.94) Paris CAC: 3,974.48 (+4.09)EUROPEAN STOCKS climbed for the second time in three days yesterday, boosted by Nestlé and Syngenta results and a better-than-forecast US consumer confidence report.

The Stoxx Europe 600 Index rose 0.3 per cent to 277.7 at the close in London.

“This reporting season will be overshadowed by the macro data that have reached peak levels in many areas,” said Matthias Joerss, a Frankfurt-based equity strategist at Macquarie Group Ltd. “While earnings numbers themselves may be strong, outlook statements will not be strong enough to drive the market higher.”

US consumer confidence climbed in April from a 16-month low, indicating that job gains are helping Americans cope with rising fuel costs.

National benchmark indexes fell in 11 of the 18 western European benchmark markets.

Gains were limited as China’s inflation accelerated in March to the fastest pace since 2008, adding pressure for more monetary tightening.

In Europe, Moody’s Investors Service downgraded Ireland’s foreign and local currency government bond ratings by two notches to Baa3 from Baa1. The outlook on the ratings remains negative.

Nestlé advanced 2.4 per cent to 54.50 Swiss francs after the maker of KitKat chocolate bars and Nescafé Gold Blend instant coffee reported first-quarter organic sales growth of 6.4 per cent.

Syngenta climbed 0.7 per cent to 304.80 francs after the world’s biggest maker of agricultural chemicals increased revenue 14 per cent to $4.02 billion as higher grain prices spurred farmers to invest.

Derwent London rose 2.6 per cent to 1,713p as JPMorgan advised buying the shares of the developer of mid-priced offices in London’s West End district.

Ladbrokes rallied 7 per cent to 144.3p and 888 Holdings plummeted 16 per cent to 34.8p, its largest drop in 10 months, as the UK bookmaker said it ended takeover talks with 888 after almost four months.

Micro Focus dropped 7.8 per cent to 291.8p, its largest drop in two months.

Commerzbank, Germany’s second-biggest lender, fell 4.3 per cent to €4.41 as WestLB reduced its price estimate for the shares.

– (Bloomberg)