Iseq outperforms European markets

Equity markets briefly pared gains after worse-than-expected US employment data, but then swiftly recovered as traders and investors said the longer-term outlook of a slow global economic pick-up remained intact.

European shares yesterday extended their rebound from last month’s losses, helped by mining stocks, as investors bet equities would continue to benefit from the gradual economic recovery.

DUBLIN
The Iseq index outperformed London's FTSE, France's CAC and Germany's DAX yesterday, gaining 65 points or 1.4 per cent to close at 4,829.

One Dublin analyst said the market was “quiet in the morning as investors awaited the publication of the non-farm payroll report in the US” but ended the day on a positive note.

Ryanair, CRH, Smurfit Kappa and Bank of Ireland were among the most-traded stocks in Dublin.

CRH outperformed the market, soaring 4 per cent to €19.82, on the back of good news from construction stocks in the US on Thursday.

Drinks company C&C also jumped by nearly 4 per cent, finishing the day at €4.54.

Some five million Ryanair shares were traded in Dublin with the stock closing near-flat at €7.20. Tullow Oil dropped 2.5 per cent, following European oil and gas stocks lower, to end the day at €10.09.

LONDON
Britain's top shares rose for a third straight session, led by mining companies, which were helped by an upbeat outlook from steelmaker ArcelorMittal.

UK equities sold off after a disappointing US jobs report, then recovered on confidence that shares will continue to benefit as global economic growth picks up speed.

Vedanta Resources increased 4.3 per cent after Bank of America raised the commodity producer to "buy" from "neutral". Vedanta mines iron ore in India and copper in Zambia.

Persimmon gained 3.4 per cent after a report said higher house prices will boost demand and economic growth in the UK.

Tate and Lyle climbed 1.8 per cent after JPMorgan Chase and Numis Securities raised their ratings on the shares.

The FTSE 100 closed up 13.40 points, or 0.2 per cent, at 6,571.68 points.

EUROPE
European stocks advanced, following their biggest rally in seven weeks, as investors assessed a report that showed the US economy created fewer new jobs last month than forecast.

EMS-Chemie advanced 3.8 per cent after posting better-than-expected profit in 2013 and saying it will pay an extraordinary dividend.

SBM Offshore, the Dutch supplier of floating oil and gas rigs, tumbled 12 per cent for its largest decline since November 2012.

The Stoxx Europe 600 Index increased 0.7 per cent to 325.09 at the close of trading, while Germany’s DAX rose 0.5 per cent. France’s CAC 40 added 1 per cent.

NEW YORK
US stocks rose in early trading, with the Standard and Poor's 500 index headed for its first weekly gain in a month, as investors scrutinised data that showed hiring rose less than forecast last month as much of the country faced inclement weather.

Expedia jumped 13 per cent after the online travel company said increased advertising and hotel room bookings helped boost sales. The shares have lost 8.8 per cent since reaching a record on January 7th.

News Corp rose 8 per cent to $17.30. The newspaper publisher that owns the Wall Street Journal and the New York Post reported second-quarter profit of 31 cents a share, excluding some one-time items.

Apple rose 2 per cent on a report the company bought back $14 billion of its shares. LinkedIn slumped 6.8 per cent after saying sales growth will slow for a fifth consecutive quarter.

The S&P 500 climbed 0.8 per cent to 1,786.78 at 12.40pm in New York. – (Additional reporting: Bloomberg, Reuters)