NATIONAL BENCHMARK indexes advanced in 15 of the 18 western European markets yesterday after better than expected economic data from Germany and France.
In Ireland the Iseq index retreated by 1.1 per cent. This was due to CRH, by far the largest stock on the Dublin market, declining by 5.35 per cent after it said earnings for the full year would be flat due to the continued weak economic conditions across Europe.
DUBLIN
CRH WAS the big mover of the day, declining by 5.35 per cent. Its Ebitda (earnings before interest, tax, depreciation and amortisation) in the first six months of this year fell by 1 per cent in line with previous guidance, with analysts revising down their forecasts for the full year.
This dragged the overall index in Dublin into the red due to CRH’s large weighting on the Iseq.
United Drug flagged yesterday that it might quit the Irish stock market for a London listing.
The company said trading across the group during the nine-month period to June had been strong, with group revenues and profits ahead of those recorded in the same period last year. Its share price closed up 4.6 per cent at €2.30.
LONDON
UK STOCKS rose, snapping two days of losses, as Germanys economy slowed less than forecast in the second quarter and American retail sales increased more than expected in July.
Standard Life jumped 8.1 per cent after posting a first-half profit that beat analysts’ estimates.
United Utilities Group rallied 4.9 per cent after the Daily Mail said the company may be the target of a break-up bid.
The FTSE 100 gained 32.90 points, or 0.56 per cent, to 5,864.78 at the close of trade in London. The equity benchmark has climbed 11 per cent from its 2012 low on June 1st as European Central Bank president Mario Draghi pledged to preserve the euro.
The broader FTSE All-Share Index added 0.6 per cent yesterday.
Standard Life surged 8.1 per cent to 277.4 pence after Scotland’s biggest insurer said first-half operating profit rose 15 per cent to £302 million.
United Utilities rallied 4.9 per cent to 722.5 pence, leading water suppliers higher.
The Daily Mail reported late yesterday speculation that a consortium, including Ontario Teachers pension plan and Qatari and Abu Dhabi funds, may be working on a break-up bid for the company. The Mail did not cite any sources.
Severn Trent added 3.4 per cent to 1,766 pence, and Pennon Group advanced 4.2 per cent to 766.5 pence, the most since October 2010.
Tesco gained 1.8 per cent to 335 pence after a report by Kantar Worldpanel showed UK grocery sales in the 12 weeks ended August 5th rose 3.9 per cent compared with a 2.1 per cent increase a month earlier.
EUROPE
EUROPEAN STOCKS gained, rebounding from a two-day decline, as a report showed German growth slowed less than forecast, while minutes revealed that several Bank of Japan policy makers are prepared to stimulate the economy.
Moeller-Maersk advanced 3.2 per cent after increasing the full-year forecast for its container-shipping unit.
The Stoxx Europe 600 Index gained 0.7 per cent to 270.54 at the close.
The gauge has rallied 16 per cent from this year’s low on June 4th as Mr Draghi said that he would do anything to protect the 17-nation currency.
“While not great in any way, German and French GDP numbers were better than expected, which adds to the scenario that there is no risk of an imminent euro break-up,” said Alexander Kraemer, a cross-asset strategist at Commerzbank in Frankfurt.
Germany’s economic growth slowed less in the second quarter than economists had forecast as exports and household spending helped to fend off the impact of the sovereign-debt crisis on Europe’s largest economy. Gross domestic product rose 0.3 per cent from the first quarter, the Federal Statistics Office said.
France’s GDP was unchanged in the quarter, better than the 0.1 per cent decline that economists had predicted. The euro-area economy as a whole contracted 0.2 per cent in the three months to the end of June.
US
US STOCKS advanced in early trading, sending the Standard and Poor’s 500 Index to its seventh gain in eight days.
Estee Lauder gained 9.5 per cent after quarterly profits beat analysts’ projections.
Home Depot increased 3.8 per cent after reporting second-quarter earnings that topped analysts’ estimates and raising its forecast for this year.
JPMorgan Chase rallied 1.4 per cent, pacing gains in financial stocks, which had the biggest advance out of 10 groups in the SP 500.
