Positive German data drives values

Sat, Nov 24, 2012, 00:00

Global markets received a lift yesterday as positive economic news from Germany boosted European markets, and Black Friday, the traditional day for post-Thanksgiving sales, got under way in the United States.

DUBLIN

Trading was quiet on the Dublin market. In line with other indices, it advanced by about 0.5 per cent, up by 11.63 points to 3,263.75.

According to brokers, there was some “volume” in CC, as investors expressed their satisfaction with the drinks group’s acquisition of the Gleeson Group. It added 5 cent, or 1.2 per cent to finish the day up at €4.10.

Ryanair also advanced on the day, gaining 3 cent, or 0.6 per cent, to climb to €4.72

There was also a bit of volume in Smurfit Kappa, although it was largely unchanged on the day, up by two cent, or 0.2 per cent, at €8.82.

Resources group Kenmare sold off slightly, giving up two cent, or 4.3 per cent, to close down at €0.38.

LONDON

UK stocks climbed for a fifth day, extending the benchmark FTSE 100 Indexs biggest-weekly advance in almost a year, as business confidence rebounded in Europes two largest economies.

The FTSE 100 added 28.11 points, or 0.5 per cent, to finish up at 5,819.14.

“Markets edged higher in afternoon trade, with encouraging German Ifo survey and improving French business confidence data helping to lift spirits,” said Ishaq Siddiqi, a market strategist at ETX Capital in London.

Xstrata, which earlier this week had its $33 billion takeover by Glencore International approved by shareholders and the European Union, climbed by 0.6 per cent to 1,020 pence, its highest level since September.

The company said construction of the first production line of the smelter at its Koniambo nickel project was complete.

Thomas Cook, which will report earnings on November 28th, rallied 4.4 per cent to 24 pence, extending its gains this week to 20 per cent.

EUROPE

European stocks climbed, with the benchmark index completing its biggest weekly gain in almost a year.

The Stoxx Europe 600 Index added 0.6 per cent to 273.23, while Frances Cac advanced by 0.7 per cent, and Germanys Dax increased by 0.8 per cent.

“Investors are, amid a bullish sentiment, buying stocks into the weekend as the holiday shopping season begins,” said Manish Singh of Crossbridge Capital in London.

“Positive news from China this week and German data this morning are supporting the positive risk tone weve seen in the last couple of days.”

Valeo, France’s second-biggest car-parts maker, gained 3.2 per cent to finish the session at €35.40. The stock was raised to buy from neutral at Goldman Sachs.

Arkema advanced by 2.1 per cent to €76.42 after the company’s chief executive officer, Thierry Le Henaff, said he expects demand in China to grow at a good pace after the Chinese new year.

NEW YORK

US stocks rose for a fifth day during a holiday-shortened, thin trading session yesterday, as investors bid up large technology stocks which had fallen to more attractive levels recently.

“Anyone that was on the sidelines waiting for a pullback like the one we just had in some of the tech names, they’re looking for any glimpse of strong price action for ‘permission’ to enter into those (stocks),” said Todd Salamone, director of research at Schaeffers Investment Research in Cincinnati, Ohio. Microsoft helped lift the Nasdaq, gaining 2.4 per cent to $27.61, while Oracle rose 1.8 per cent to $30.94. – (Additional reporting: Bloomberg/Reuters)