UK’s avoidance of triple dip recession bolsters markets

European stocks continued their strong run yesterday following a report that the UK had avoided entering triple-dip recession.

DUBLIN
The Iseq index lost 0.1 per cent, again bucking the trend of strong market performance across Europe.

In the spotlight Aer Lingus closed down 2.1 per cent at €1.39 following an announcement by the airline that its operating loss increased by €9.4 million to €45.5 million compared with the first three months of 2012. It is also to seek 100 voluntary redundancies.

Ryanair , meanwhile, fared little better. The budget airline continued to under-perform, closing down a further 1 per cent. C&C also finished poorly, losing 3 per cent of share value: the price at the close was €4.82.

LONDON
UK stocks climbed with the FTSE 100 index extending its highest level in three weeks after a report showed Britain had avoided a triple-dip recession.

Vodafone Group climbed to an 11-year high after a report that Verizon Communications may offer $100 billion to take control of Verizon Wireless. It advanced 1.7 per cent to 196.4 pence

Unilever lost 3 per cent after the world's second largest consumer goods company posted the slowest quarterly revenue growth in two years.

Ocado Group , an online grocer that sells products from Waitrose, surged 12 per cent to 168.1 pence, its biggest advance in six weeks. Ocado, according to reports, may soon sign a deal to become the online distributor for WM Morrison Supermarkets.

A gauge of London-listed commodity producers rose for a third day. Randgold Resources and Lonmin , which both operate mines in Africa, rallied 5.4 per cent to 5,315 pence and 6.4 per cent to 291.2 pence respectively. .

British American Tobacco climbed 1.2 per cent to 3,591 pence. Europe's largest cigarette maker said first-quarter sales excluding currency swings rose by 5 per cent.

EUROPE
Stocks across Europe advanced for a fifth day, their longest rally this year. The Stoxx Europe 600 index added 0.8 per cent to 296.88 at the close, its highest price since April 2nd.

National benchmark indexes advanced in 13 of the 18 western European markets. France’s CAC 40 was little changed, although Germany’s DAX jumped 1 per cent.

Nobel Biocare Holding jumped 13 per cent to 10.70 Swiss francs, its largest increase since October 2011. The world's second biggest maker of dental implants posted first-quarter net income of €13.3 million.

Technip climbed 5.6 per cent to €83.47 as Europe's second largest oilfield-services provider said its contract backlog rose to a record €14.8 billion at the end of the first quarter, a 20 per cent gain from the year-earlier period.

Banco Santander retreated 2.4 per cent to €5.49 after Spain's biggest lender reported first-quarter net income of €1.21 billion, missing the €1.31 billion average estimate of analysts. Royal KPN , a Dutch phone operator, slid 6.8 per cent to €2.59, the sharpest drop in two months.

NEW YORK
US stocks had advanced by midday trading yesterday as jobless claims fell and earnings topped forecasts. A government report said the number of Americans filing new claims for unemployment benefits fell last week.

Iron ore producer Cliffs Natural Resources jumped 17.56 per cent to $21.42 after it posted earnings late on Wednesday that were much better than analysts had estimated.

UPS gained 2.5 per cent after posting higher earnings than estimated as the world's largest package-delivery company carried more purchases to online shoppers.

Dow Chemical jumped 5.8 per cent as corn-seed sales rose and lower prices for natural gas boosted earnings from plastics. – ( Additional reporting, Bloomberg, Reuters)