European stocks advance despite doubts

Stocks across Europe advanced yesterday as an increase in Chinese exports outweighed investor concerns that the Federal Reserve in the United States will pare bond purchases this year.

Trading on the Dublin market was described as “solid” by dealers, with the Irish market rising by 1.04 per cent to 4,229.98.

DUBLIN
Bank of Ireland was the big mover of the day, up 6.7 per cent to 19.1 cent. The bank published improved half-year results last week and the uptick in trading is believed to be a response to the current investor roadshow being undertaken by management.

“It appears to be generating new buyers,” one trader said.

Drinks group C&C was up 3.5 per cent at €4.15 after a recent poor run while Kerry Group closed the day marginally up 0.11 per cent at €46.90 after it published solid results for the first half of the year.

Kerry said it was confident of achieving its full-year growth targets as it reported a 1.1 per cent increase in revenues for the six months to the end of June. Its profits after tax rose by 12.2 per cent to €117 million while revenues rose to €2.95 billion.

Aminex was the biggest faller on the day in Dublin, down 6.7 per cent on small volumes. Bookmaker Paddy Power was 0.6 per cent lower at €60.06.

EUROPE
BHP Billiton rose 3 per cent as European commodity producers climbed.

Deutsche Telekom rose the most in more than two years after second-quarter sales beat forecasts. Commerzbank surged 16 per cent after profit in the second quarter exceeded estimates.

Banca Monte dei Paschi di Siena slid 2.4 per cent after reporting a worse-than-forecast second-quarter loss. Nestlé fell 2.1 per cent after posting the slowest first-half sales growth in four years.

The Stoxx Europe 600 Index climbed 0.5 per cent to 304.17 at the close of trading. The benchmark has rallied 10 per cent since June 24th as the Fed, European Central Bank and the Bank of England pledged to continue stimulus.

National benchmark indexes gained in 17 of the 18 western-European markets. The UK’s FTSE 100 advanced 0.3 per cent, Germany’s DAX Index added 0.7 per cent and France‘s CAC 40 rose 0.6 per cent.

A gauge of European commodity producers advanced the most of the 19 industry groups in the Stoxx 600.

LONDON
UK stocks rose, rebounding from their biggest decline in more than six weeks.

Commodity producers contributed the most to the FTSE 100 Index’s advance after data showed China’s imports and exports increased more than economists had predicted.

Insurer Aviva jumped to a two-year high after posting first-half operating profit that beat analysts’ estimates and saying that restructuring costs fell 10 per cent. The FTSE 100 gained 18.47 points, or 0.3 per cent, to 6,529.68 at the close of trading in London.

The equity benchmark has rallied 8.3 per cent from a low on June 24th as the Federal Reserve said it remains flexible on the pace of bond buying.

A gauge of London-listed mining companies increased 3.1 per cent, rebounding from its lowest level in three weeks. The index has still slumped 18 per cent this year.

US
US stocks rose in early trading, with the Standard and Poor's 500 Index on track to snap a three-day decline, as Chinese trade data topped estimates and investors weighed jobless claims for clues on the timing of Federal Reserve stimulus cuts.

Cliffs Natural Resources and Newmont Mining Corp gained at least 8.3 per cent as metals prices rallied. Tesla Motors surged 17 per cent after reporting second-quarter results that surpassed analysts’ estimates. AT&T slid 0.9 per cent as phone stocks fell the most in the benchmark index. –(Additional reporting: Bloomberg)