Stocks up on positive industrial data from China

Better than forecast industrial data from China gave a boost to stocks on this side of the Atlantic while in the US the markets were becalmed as the bond markets closed for Veterans’ Day.

The Iseq close at 4,472.37, a rise of 0.8 per cent. In London RSA Insurance Group plunged 11 per cent to 108.1 pence, its largest drop since February 20th, after Britain's biggest non-life insurer by market value was hit by the news that it had suspended three top executives at its Irish unit and said 2013 results will miss analysts' estimates.

The full-year operating result will be £70 million lower than analysts estimate after it had to inject capital into the division.

DUBLIN
Sales at insulation maker Kingspan advanced by 13 per cent in the first nine months of the year to September 30th, up to €1.32 billion, the company said yesterday. The pace of growth "progressed solidly" in the third quarter, with sales up by 14 per cent. Pre-acquisition sales however fell by 3 per cent.

On a full-year basis, the group is forecasting trading profit growth of about 10 per cent for the year, given the “seasonally important” fourth quarter is yet to come. The stock closed at €13.17, a rise of 1.31 per cent, slightly ahead more than the Iseq.

CRH closed up 1.56 per cent, at €18.57, while Bank of Ireland closed at €0.26, a rise of 0.38 per cent.

Food stocks Kerry and Glanbia had varying fortunes. Kerry closed at €46.89, a rise of just 0.04 per cent, while Glanbia closed at €10.61, a rise of 1.05 per cent.

LONDON
UK stocks advanced for a second day, with the benchmark FTSE 100 Index rebounding from its first weekly loss in more than a month, as investors weighed Chinese industrial-output data.

The FTSE 100 climbed 19.95 points, or 0.3 per cent, to 6,728.37 at the close in London. The gauge fell 0.4 per cent last week as European Central Bank president Mario Draghi announced an interest-rate cut, signalling a worsening regional economy. The broader FTSE All-Share Index increased 0.3 per cent.

Lloyds Banking Group rose 2.1 per cent after HSBC Holdings said the lender's margin expansion is continuing. Analysts' estimates for no revenue growth look too pessimistic, HSBC's Peter Toeman and Robin Down wrote.

Schroders advanced 4.3 per cent to 2,542 pence. Numis Securities raised the money manager to add from hold, saying there are potential gains in the fourth quarter from performance fees and flows into European equities.

EUROPE
European stocks advanced, extending five weeks of gains. National benchmark indexes climbed in all of the western European markets, except Iceland and Greece. Germany's DAX added 0.3 per cent, while France's CAC 40 advanced 0.7 per cent.

Grifols, Europe's largest blood-plasma products maker, advanced 4.5 per cent to €32.36. Novartis said will sell its blood-transfusion diagnostics unit to the Spanish company for $1.68 billion, completing the deal in the first half of 2014.

Deutsche Telekom dropped 0.9 per cent to €11.24, its lowest price in a month. Germany's biggest telephone-service provider agreed to buy Warsaw-based GTS Central Europe, giving it landline grids in Poland, the Czech Republic, Hungary and Romania, where its services are currently mostly wireless.

NEW YORK
US stocks barely budged in thin trading after investors found little reason to add significant new positions with the Dow and the S&P 500 on a five-week winning streak.

The pause comes after October’s jobs report drove the Dow Jones industrial average to close on Friday at another record high.

Volume yesterday was expected to be quiet, with bond markets closed for Veterans’ Day. (Additional reporting, Bloomberg, Reuter)