European stocks slightly up after seesaw session

Early morning losses on Wall Street yesterday weighed on European shares in the afternoon, souring sentiment that had been positive. Data showing an increase in stockpiles of US crude oil sent oil stocks into reverse in the final hour of trading. The surge in energy shares had boosted index values for much of the day, while airline stocks had conversely lagged the rally.

DUBLIN The Iseq fell 1.7 per cent, underperforming other European markets, as its second biggest component, Ryanair, tumbled more than 5 per cent, closing at €12.59. Airlines across Europe suffered similar declines.

Bank of Ireland gave up gains made on Tuesday, selling off in the afternoon and closing down 1.4 per cent.

Kerry Group finished at €66.80, down 1.8 per cent, while Paddy Power declined 1.9 per cent to €100.85.

CRH was flat, while one of the few companies to make gains was Providence, climbing 13.7 per cent on a good day for oil and gas stocks.

After the close of markets, FBD Holdings announced Fiona Muldoon, its interim chief executive, has been appointed to the role on a permanent basis.

LONDON The FTSE 100 index ended at its highest closing level since August, buoyed by surging mining stocks.

SABMiller edged up 0.3 per cent after it rejected an improved £42.15 per share offer from the world's largest brewer Anheuser-Busch InBev. The shares remained below the offer price, indicating nervousness over whether a deal would be sealed.

The blue-chip FTSE 100 finished up 0.2 per cent at its highest closing level since August 20th. It came down off earlier intraday highs towards the end of the session but still posted its sixth successive day of gains.

Shares in Anglo American surged about 10 per cent, while smaller rival Lonmin, which is outside the FTSE 100 index, jumped 34 per cent.

A 55 per cent slump in Tesco’s first-half profits still left it trading ahead of expectations and outperforming rivals. Its shares initially fell nearly 3 per cent but then recovered to end 2.5 per cent higher.

International Consolidated Airlines Group and Easyjet both fell after Credit Suisse cut the sector to "equalweight" from "overweight", saying a stabilisation in the oil price would weigh on their performance.

EUROPE The Stoxx 600 finished up just 0.1 per cent at the close of trading, after earlier climbing as much as 1.2 per cent. Healthcare shares fell the most among Stoxx 600 groups, with Roche Holding and Novartis losing at least 2.4 per cent. A gauge of mining stocks posted the best performance among European industry groups, capping its best seven-day gain since 2009.

German car manufacturer Volkswagen, which lost as much as $33 billion in market value last month after admitting to cheating on emissions tests, jumped 7.1 per cent for a third day of gains.

Spanish engineering firm Tecnicas Reunidas fell 5.6 per cent. A broker said the stock was hit by a report saying the oil minister of Kuwait had ordered an indefinite delay in signing a multibillion refinery contract.

US Stocks were trading marginally higher at lunchtime in New York amid volatile trading as investors worried about corporate earnings and a rally in crude oil prices ran out of steam.

Yum Brands, owner of KFC, Pizza Hut and Taco Bell, slumped 18.1 per cent to $68.32 after its results showed a recovery in China that was slower than expected. McDonald's, which also has a large exposure to China, fell about 1 per cent to $101.12.

Among tech stocks, Apple was down 1.4 per cent while Adobe fell 7 per cent after lowering its 2016 profit forecast. Twitter rose 5 per cent to $28.99 after Saudi Arabian billionaire Prince Alwaleed bin Talal and his investment firm raised their stake to more than 5 per cent. – (Additional reporting: Bloomberg / Reuters)