European equities declined for a fourth day as the region's two largest stocks retreated, the Zurich-listed food giant Nestlé and pharmaceutical company Novartis, both dropped more than 1 per cent.
The impact of their decline outweighed a sense of relief among investors that there would be no major spillover from the troubles of Portugal's largest lender, Banco Espírito Santo, after the Portuguese government bailed it out.
DUBLIN
The Iseq index declined 0.3 per cent, extending Friday's losses, on a day of little local activity due to the August bank holiday. Building materials group CRH fell almost 0.5 per cent to €17.27, while Ryanair slipped back 0.3 per cent to €6.76.
Food group Kerry declined 1.6 per cent to €54.63, however the volume of trading was modest. The busiest stock was Bank of Ireland, which edged up 0.75 per cent to 27 cent, as financial stocks across Europe took comfort from an outlook statement from HSBC and from the intervention of the Portuguese government in Banco Espírito Santo.
There were contrasting fortunes for two of the Iseq's other significant stocks, Smurfit Kappa and Paddy Power, with the paper and packaging group climbing 0.7 per cent to €16.23 and the bookmaker falling 1.3 per cent to €52.43.
Elsewhere, IN&M and drinks group C&C also posted gains, but the drops for CRH, Ryanair and Kerry were enough to leave the market in negative territory for the day.
LONDON
UK stocks were little changed, with the FTSE 100 index of blue-chip stocks holding firm after retreating to a three-week low on Friday.
The index dropped 1.66 points, less than 0.1 per cent, at the close in London, after falling back 1.7 per cent last week amid crises in Ukraine, Argentina and Portugal. HSBC Holdings proved to be a steadying influence on the day's trading, with its stock adding 0.9 per cent to 635 pence after it forecasted stronger revenues for next year, citing strengthening economic growth and rising interest rates.
GlaxoSmithKline increased 1 per cent to 1,430 pence after the Financial Times reported that private-equity firms such as KKR and Warburg Pincus may spend $10 billion buying older brands from both it and Sanofi.
Balfour Beatty added 1.8 per cent to 244 pence as the Sunday Telegraph said that four bidders are competing for the firm's Parsons Brinckerhoff unit.
However, there was a decline for British American Tobacco, which lost 0.8 per cent to 3,417.5 pence.
EUROPE
National benchmark indexes dropped in nine of the 17 western European markets that opened today. France's CAC 40 managed to rise 0.3 per cent, but Germany's DAX declined 0.6 per cent and the Swiss market slid 1.3 per cent for its biggest decline since April.
Nestlé, the world's largest food company, dropped 1.5 per cent to 66.55 Swiss francs for a sixth day of losses, while drugmakers Novartis and Roche Holding slid 1.3 per cent to 78.55 francs and 1.4 per cent to 261.10 francs respectively.
Immofinanz slipped 2.7 per cent to €2.25 after the Austrian property developer reported annual profit that missed projections and said a delay in the construction of a Moscow shopping centre hurt rental income.
NEW YORK
US stocks rose, after the biggest weekly loss in two years for the S&P's 500 Index, as the Portuguese bank bailout was announced and Warren Buffett's Berkshire Hathaway beat earnings estimates.
The billionaire investor's holding company rose 2.5 per cent to $128.92 as results improved at operating businesses including auto insurer Geico, railroad BNSF and the energy unit. VeriSign climbed 3.3 per cent to $54.94 after Buffett raised his stake in the company, which manages a directory of Internet addresses, to 10.4 per cent from 8.2 per cent. – (Additional reporting: Bloomberg)
