Stocks rebound after Wednesday's fall

EUROPEAN STOCKS rose yesterday, after falling the most in two months on Wednesday, amid speculation that China may announce new stimulus measures to bolster economic growth and as the Spanish government presented its budget for 2013.

US stock markets also steadied, as jobless claims fell more than forecast.

Spanish 10-year yields fell for the first time in three days and equities extended gains as Spanish prime minister Mariano Rajoy’s government announced its fifth austerity package in what may be a move to head off tougher conditions as part of a potential European bailout.

DUBLIN

IT WAS a quiet day in Dublin, with little of specific note in terms of stock movements, though the index took part in the general market rally. The Iseq index finished up fractionally at 3,274.

There was a certain amount of relief in the market after the previous session’s falls, with banking stocks in particular rallying. Bank of Ireland, which suffered made significant falls on Wednesday, added 3 per cent to €0.096.

Airlines had a mixed day. Low-cost carriers across the board performed well, and Ryanair added 1.5 per cent to €4.45. However, Aer Lingus slipped towards the close, closing down at €1.02, despite its Siptu members agreeing to attend Labour Relations Commission report.

Providence Resources, which reports interim results today, declined by 2.3 per cent to €8.50.

There was minimal reaction following Madison Dearborn’s sale of €140 million worth of Smurfit stock, with Smurfit finishing up fractionally higher at €7.92.

Kerry Group, which has been presenting to investors, was relatively active, though it slipped a half a per cent at €38.95.

LONDON

THE FTSE index erased earlier gains to close 0.2 per cent higher. Figures released yesterday show that Britain’s economy contracted less than thought during the second quarter, boosting sentiment.

Mining stocks helped the market, with Evraz 6.3 pence higher at 244.5 pence and Randgold Resources up 140 pence to 7475 pence.

Banks also recovered some of yesterday’s heavy losses, with Barclays 3.6 pence higher at 217.25 pence and HSBC ahead 5.8 pence, at 579.5 pence.

Security firm G4S was among the fallers amid reports that at least one of its executives will lose their job in the wake of an independent report into its handling of security for the London Olympic Games.

Its shares closed down 1.3 per cent at 263.7 pence, as Goldman Sachs reduced its target price on the blue-chip stock.

Shares in TUI Travel rose by 2.9 pence to 223 pence, after the travel company said most of its summer programme was fully sold, keeping it on track to meet expectations for the financial year.

EUROPE

EUROPEAN STOCKS rose, after falling sharply in the previous session, as Spain’s cabinet approved the 2013 budget.

Crédit Agricole advanced 3.8 per cent after saying it may soon sell its Emporiki Greek unit. Opap jumped 3 per cent after Greece’s Hellenic Republic Asset Development Fund published calls for expressions of interest for the government’s stake in the company.

H&M, Europe’s second-largest clothing retailer, slid 5.8 per cent as third-quarter profit missed analyst projections. Net income was 3.62 billion Swedish kroner (€48.5 million) in the three months ended August 31st the Stockholm-based company said.

Raiffeisen Bank International rose 3.5 per cent to €28.86.

The Stoxx Europe 600 Index added 0.3 per cent to 271.65 at the close. European shares have rallied 8.2 per cent so far this quarter, heading for the biggest quarterly advance since 2009.

National benchmark indexes climbed in 14 of the 18 western- European markets.

France’s Cac 40 rose 0.7 per cent, while the Dax gained 0.2 per cent, but Spain’s Ibex 35 fell 0.2 per cent.

NEW YORK

The S&P 500 snapped a five-day string of declines in a broad-based rally as Spain’s plans for economic reform eased some worries about one of the euro zone’s most troubled countries.

Apple, up 2.4 per cent at $681.32, gave the biggest lift to the Nasdaq. Intel was up 1.9 per cent at $23.09. After the bell, US-listed shares of Research In Motion surged 15 per cent to $8.21 after the Canadian maker of the BlackBerry reported a smaller-than-expected quarterly loss.

In the regular session, the stock closed at $7.14 – up 2 per cent.

Tempur-Pedic International agreed to buy rival mattress maker Sealy for about $242 million and assume about $750 million in debt. Tempur-Pedic shares gained 14.4 per cent to $30.64, while Sealy’s stock rose 2.3 per cent to $2.19.

Discover Financial Services reported third-quarter earnings that beat expectations and its shares climbed 7.3 per cent to $39.71. – Additional reporting: Reuters/Bloomberg