Energy firms push European equities up

Energy companies pushed European equities up for a second day running, amid better-than-estimated earnings reports and news of oil reaching $45 a barrel. In London, the FTSE was boosted by a strong set of results for pharmaceutical group GlaxoSmithKline, while the Dublin market saw a mixed bag of updates from its key stocks.

Investors retained their vigilant watch over central bank policy over the course of the day, as the Federal Reserve was due to announce its rate decision after the close of European markets.

The Fed said it would keep US interest rates unchanged and, although it left the door open to a rate rise in June, its statement implied that it was in no hurry to follow on from its December rate rise. The statement helped US stocks recover some early losses, lowered long term bond yields and boosted crude oil prices.

DUBLIN

The Iseq finished up 0.8 per cent, close to its high for the session, as most of its biggest stocks made gains.

CRH

added 1.35 per cent to €26.22, after the cement maker issued a strong trading update that highlighted a 9 per cent increase in revenues in the first quarter and a positive outlook for the second-half of 2016.

However, food group Kerry fell 2.5 per cent to €78.70, after it published its interim management statement, which reiterated its guidance on earnings, but noted currency headwinds. Glanbia also lost ground, finishing at €17.30, down 1.5 per cent, after it reported a drop in sales in its first-quarter update.

Paper and packaging group Smurfit Kappa was also among the fallers, declining 1.2 per cent to €23.28. Elsewhere, Ryanair advanced 1.9 per cent to €13.43, while insulation and building materials company Kingspan rose 2.7 per cent to €23.18, and Paddy Power Betfair added 3 per cent to close at €116.35.

Dalata Hotel Group closed up fractionally at €4.44 after it noted an encouraging start to 2016.

LONDON

Britain’s top share index edged up 0.6 per cent yesterday, boosted by strong results from drug maker

GlaxoSmithKline

.

Glaxo rose 2 per cent to add around 6 points to the index, lifting the FTSE 100 after publishing results at 11am that showed a better-than-expected 14 per cent lift in earnings in the first quarter.

Shares in Asia-focused Standard Chartered fell 1.1 per cent following a downgrade by analysts at Deutsche Bank from "hold" to "sell".

Supermarket group Tesco was the biggest faller, down 4.7 per cent.

EUROPE

The Stoxx Europe 600 Index rose 0.3 per cent at the close of trading, reversing losses of as much as 0.4 per cent.

Statoil jumped 6.1 per cent after Norway's biggest oil company unexpectedly posted a profit, and French oil giant Total gained 2.8 per cent as its earnings beat estimates.

NEW YORK

Wall Street stocks were little changed after fears eased that the Federal Reserve would strongly signal it would raise interest rates in June.

The technology sector remained the largest weight on the market after Apple slumped more than 6 per cent following its first revenue decline in over a decade.

Exxon Mobil shares hit their highest level since May 2015 after the energy giant raised its quarterly dividend to 75 cents from 73.

– (Additional reporting: Bloomberg / Reuters)