European stocks rallied late, reversing earlier losses, as a report showed that US economic growth had beaten forecasts.
Commerce department figures showed that US gross domestic product grew 3.5 per cent in the three months ending on September 30th, after a 4.6 per cent gain in the second quarter. Economists had forecast growth of 3 per cent.
DUBLIN
The Irish market more or less copied the pattern in
Europe
with a strong finish making up for slower trading earlier in the day, traders said, although volumes were reported to be light.
Less sparks flew in cider maker C&C, which is bidding to buy British pub group Spirit, than on Wednesday, when results showed falls in profitability in its US and British businesses, sparking a selloff that knocked 8.6 per cent off its value.
The stock recovered slightly, rising 0.59 per cent to €3.42. Dealers pointed out that some investors were willing to “look through the noise” around the stock and buy at that price, which they said could be viewed as cheap.
Bank of Ireland continued a drift that began earlier in the week, sliding 2.31 per cent to close at €29.6.
Ryanair was "quiet" as investors wait for its half-year results on Monday. The market is expecting an upgrade and the no-frills airline gained altitude, adding 1.24 per cent to €7.46.
Dragon Oil, which is bidding for fellow Irish explorer Petroceltic, was also stronger yesterday, increasing 4.36 per cent to close at €6.66.
Fyffes, whose hopes of a merger with Chiquita were dashed last week, dropped 3.68 per cent to 91.5 cent.
LONDON
Barclays
added 0.9 per cent to 222.6p, after earlier rising as much as 2.2 per cent. Quarterly earnings increased even as the bank set aside £500 million to settle probes into currency markets. Adjusted pretax profit rose to £1.59 billion from £1.39 billion a year earlier, beating analyst estimates.
Irish-based builders' merchant and DIY specialists Grafton gained 3.24 per cent to close at 620.5p after buyers plunged for its stock yesterday.
EUROPE
Renault
advanced 2.9 per cent to €57.21. Europe’s third-largest car maker said late yesterday that revenue rose to €8.53 billion. That beat the €8.19 billion average of analyst estimates. Volkswagen, the region’s biggest auto maker, climbed 1.9 per cent to €165.15 after reporting quarterly profit that beat analyst predictions.
Bayer climbed 2.7 per cent to €109.95. Germany's largest drugmaker reported third- quarter earnings, before interest, taxes, depreciation and amortisation, excluding certain items, of €2.01 billion, topping analyst calls for €1.95 billion. Bayer also raised its forecast for the year.
Banks in Europe’s periphery fell after Enria said the results of the health check, announced on October 26th, show that lenders still have a lot of work to do to ensure capital adequacy. He also said the asset-quality review and stress tests won’t lead to an instant boost in lending.
Banco Bilbao Vizcaya Argentaria retreated 1.4 per cent to €8.69.
Italy's Banca Monte dei Paschi di Siena slipped 7.1 per cent to 67.9 cent, the lowest price since at least 1999. National Bank of Greece slid 5.5 per cent to €1.89.
Linde fell 2.8 per cent to €150.90 after the world's largest industrial-gases company said it will miss full-year and 2016 profit goals. Operating profit will be at a similar level to 2013.
NEW YORK
The strong economic data boosted US markets, which were up 1 per cent at the close of business in Dublin. Visa jumped 11.1 per cent to $238.49 as the biggest boost to both the Dow and S&P 500 a day after it reported adjusted earnings that topped expectations.
MasterCard also posted a better-than-expected profit, while revenue was up almost 13 per cent. Its shares added 9.1 percent to $82.88.
– Additional reporting: Bloomberg, Reuters
