European shares fall on stimulus fears

European shares fell for a fourth consecutive day on fears that the US Federal Reserve will slow stimulus measures sooner than forecast in response to better than expected job numbers.

A report yesterday showed that US companies recruited 215,000 workers in November, well ahead of predictions.

The news sparked concerns that the Fed would cut back on its $485 billion a month bond-buying programme.

DUBLIN
The big news on the day was Bank of Ireland raising €580 million at 26 cent a share, the higher end of market expectations.

Its stock closed 2.6 per cent down at 26.2 cent, not unexpectedly given that it was issuing new shares, but dealers said the significant point was the level of interest shown in the bank at the 26 cent level.

International packaging group Smurfit Kappa shed 1.1 per cent to close at €16.25. Dealers indicated it was one of a number of companies where investors were profit-taking.

Insulation specialist Kingspan dipped 0.67 per cent to €11.94, with traders also citing profit-taking. Drinks-maker C&C "got a reprieve", adding 0.39 per cent to €4.385.

Ryanair dipped 0.96 per cent to €5.905 on signs that oil prices were strengthening.

Elsewhere, the market's biggest company, international building materials giant CRH, fell 0.95 per cent to end the day at €17.685.

LONDON
Standard Chartered slid 6.5 per cent to 1,338.5 pence, its lowest price since August 2012. The UK bank that generates about three-quarters of its profits from Asia said full-year operating profit at its consumer banking unit would decline at least 10 per cent because of weakness in Korea.

Irish-linked Tullow Oil gained 2.58 per cent to close at 876 pence on the back of oil price rises on world markets.

Sage Group jumped 7.3 per cent to 372.9 pence after proposing a final dividend of 7.44 pence a share, exceeding analysts' projections of 7.1 pence. The software publisher posted sales of about £1.38 billion yesterday, in line with analysts' forecasts.

EUROPE
Elekta dropped 5.4 per cent to 91.30 kronor after the maker of radiation-surgery equipment reported second-quarter operating profit of 304 million kronor, missing the average analyst estimate for 424 million kronor.

Banca Monte dei Paschi di Siena fell 5.3 per cent to 17.4 cents after Il Sole reported that Fondazione Monte dei Paschi di Siena, the biggest shareholder, may sell some or all of its stake in the lender before a December 27th investor meeting.

Danish wind turbine maker Vestas Wind Systems retreated 3.4 per cent to 141.10 kroner after saying its Marena Renovables project in Mexico has been further delayed. The company said in a statement that it has agreed to extend the forbearance agreement from November 30th until February 28th, 2014.

French auto-maker Peugeot climbed 5.3 per cent to €12.11 after Goldman Sachs added the shares to its conviction-buy list, citing a capital increase, asset disposals and a probable alliance in China.

US
US stocks also fell early for the fourth day in a row as a positive economic front left investors anticipating a quicker than anticipated slowdown in Fed stimulus measures.

Shares in clothing retailer Express tumbled 23 per cent to $19.01 after the company forecast quarterly earnings below analysts' estimates due to weak Thanksgiving sales.

OmniVision Technologies slumped 6.5 per cent to $14.99 after the chipmaker forecast current-quarter revenue well below analysts' estimates.

Oculus Innovative Sciences shares surged 165.7 per cent to $6.19 after receiving the go-ahead from the US Food and Drug Administration for its anti-scar gel. – (Additional reporting: Bloomberg)