Stocks have mixed day in Europe

EUROPEAN STOCKS were little changed near their eight-month high yesterday, as investors weighed up signs of improving economic data from the US with concerns about a slowdown in demand for commodities in China.

The week’s trading kicked off with a quiet session in Europe. The volume of shares changing hands on the Euro Stoxx 50 Index was 22 per cent less than the average over the past 30 days, according to data compiled by Bloomberg.

In the US, where Taoiseach Enda Kenny rang the opening bell at the New York Stock Exchange, investors’ eyes were trained on Apple, which announced that it would spend part of its large cash surplus on a dividend.

DUBLIN

THERE WERE few flickers of life on the Iseq, which slipped around 0.9 per cent compared to Friday’s close, with the low volumes reflecting trading patterns across Europe rather than the St Patrick’s Day bank holiday.

Bank of Ireland drifted lower, finishing down 4.8 per cent at 14 cent, as financial stocks endured a mixed day across Europe.

Builders’ merchants and DIY chain owner Grafton was also weaker, closing at €3.27, down 1 per cent.

Food group Glanbia fell 3.25 per cent to €5.66, while fruit company Fyffes closed down 4.6 per cent at 42 cent.

Total Produce, which is now part of the Iseq 20 index, gave up some of the ground it had built up last week, falling 8.7 per cent to 45 cent.

A good result for Dragon Oil helped the stock to a strong day both in its London and Dublin listings – it finished up 8 per cent in Dublin.

LONDON

THE BENCHMARK FTSE 100 Index slipped 0.1 per cent, as weakness in banking stocks overshadowed a recovery by mining stocks late in the session.

Standard Life fell 1.2 per cent to 247.7 pence, snapping a five-day rally. Credit Suisse Group AG downgraded Scotland’s biggest insurer to underperform from neutral, equivalent to a sell recommendation.

Misys Plc rallied 7.4 per cent after Vista Equity Partners agreed to buy the company for £1.3 billion. Misys paced advancing shares, jumping 7.4 per cent to 354 pence after Vista reached an agreement to buy the British financial software company for 350 pence a share, a week after Temenos Group AG ended talks over an all-share merger with Misys.

EUROPE

EUROPEAN STOCKS were little changed after last week’s biggest advance for the benchmark Stoxx Europe 600 Index since early February. National benchmark indexes fell in eight of Europe’s 18 western markets. France’s CAC 40 lost 0.5 per cent, while Germany’s DAX slipped 0.1 per cent.

Greek banks climbed as corporate bond risk fell in Europe. National Bank of Greece SA, the country’s biggest lender, rallied 6.2 per cent to €2.57 as the cost of insuring against default on European corporate debt fell to the lowest in more than eight months. Danish group DSV retreated 2 per cent to 131.30 kroner after UBS AG lowered its rating for the transport and logistic company to neutral from buy.

The Swiss banking group Julius Baer fell 2.1 per cent in trading to 36.75 Swiss francs after saying Raymond J Baer will step down from the board to lead efforts to resolve matters relating to a tax- evasion probe by the US.

TNT Express advanced 1.1 per cent to €9.44 after United Parcel Service sweetened its bid to €5.16 billion. PostNL increased 1 per cent to €4.71 after the company agreed to sell its 29.8 per cent stake in TNT following UPS’s takeover bid.

US

US STOCKS rose in early trading as Apple announced a dividend and buyback plan and banks advanced, while 10-year Treasuries extended the longest slump since 2006 as investors bet the economy will continue to strengthen. Natural gas and cotton led commodities higher.

The Standard and Poor’s 500 Index added 0.5 per cent to an almost four-year high by lunchtime in New York, extending its best first-quarter rally since 1998.

Technology companies helped lead the advance as Apple, the most-valuable company, climbed 2.3 per cent and touched $600 for a second time after authorising a $10 billion stock-repurchase plan and a quarterly dividend of $2.65 a share.

Financial shares in the SandP 500 rallied 1.3 per cent as a group as Citigroup, Bank of America and Wells Fargo paced gains in all but two of 24 stocks in the KBW Bank Index. The dollar weakened against all 16 major peers except for the yen.

Not since 1999 have currency traders been bullish on the dollar for so long, a sign that the market sees the US resuming its role as the engine of global economic growth, data from the Commodity Futures Trading Commission indicates. (Additional reporting: Bloomberg / Reuters)