Food stocks, under pressure from a broad downweighting of defensive sectors, back-pedalled in spite of strong results from industry leader NestlΘ and positive broker comment for Numico.
NestlΘ turned in six-month figures that were comfortably in excess of broker estimates and forecast growth in both sales and profits for the full year. The performance sparked widespread talk of broker earnings upgrades as ABN Amro lifted its recommendation to "buy" and target price to SFr435.
However, NestlΘ finished an active session off 1.9 per cent at SFr364 with 3.2 million shares changing hands. Unilever lost 0.2 per cent at 66.90 and Danone 1.3 per cent at 146.20. Numico, which attracted broker upgrades following last week's interim figures, fell 2 per cent to 42.49.
Investors' lost appetite for defensive stocks hit insurance shares for the second day running.
Swiss Re stayed weak in spite of a radical move (it is swapping its credit insurance arm for a stake in new owner Gerling NCM Credit and Finance) aimed at greater concentration on core activities. The stock came off 3.5 per cent at SFr167 for a two-day decline of 6.3 per cent. Zurich Financial shed 3.3 per cent at SFr530.
Stora Enso shot higher amid a flurry of merger rumours sparked by a Swedish press report that suggested Stora was in talks with International Paper of the US, the forestry sector leader.
Stora stayed tight-lipped as the stock progressed, closing 6.7 per cent higher at 13.14 after a session peak of 13.25.
Spanish banks were among the foremost beneficiaries of the news that Argentina had finally come to terms with the IMF over an aid package.
The two top performers in the FTSE 300 Eurotop index, Nordea and Deutsche Lufthansa, reached their positions as a result of stronger-than-expected results.
