Europe stocks at highest level in five years

On quiet day in Dublin, C&C gains 4% on good results despite struggle in US

Ryanair drifted slightly on the Irish Stock Exchange, closing at €6.10, its performance weakening ahead of results on Monday. Photograph: Rui Vieira/PA Wire

Ryanair drifted slightly on the Irish Stock Exchange, closing at €6.10, its performance weakening ahead of results on Monday. Photograph: Rui Vieira/PA Wire

Thu, Oct 31, 2013, 20:22

The euro weakened the most in six months versus the dollar as inflation in the region slowed more than forecast and improving US economic data fuelled speculation the Fed will taper its stimulus programme in the coming months.

C&C was the star performer on what was largely a flat day in Dublin, up 4 per cent to €4.31 following results on Wednesday. Although struggling with US operations, Irish business had been good, a trader said.

Ryanair drifted slightly, closing at €6.10, its performance weakening ahead of results on Monday. Yesterday’s announcement of new routes had long been flagged and had little impact on trading. Paddy Power continued its recovery, finishing up 1.7 per cent to €60.

Bank of Ireland was up 4.25 per cent to €0.27 and AIB closed down 5 per cent.

UK stocks fell from their highest level since May. The FTSE 100 slid 46.27 points, or 0.7 per cent, at the close of trading. t.

Shell lost 4.9 per cent to 2,076.5 pence, its biggest drop since August 2011. Europe’s biggest oil company said profit excluding one-time items and inventory changes fell 32 per cent to $4.5 billion in the third quarter as income from refineries plunged, disruption in Nigeria cut output and spending rose.

Croda slid 7.8 per cent to 2,436p, its largest drop since December 2008. The world’s second-biggest cosmetics ingredients-maker posted third-quarter profits that missed analysts’ predictions.

BT Group rose 2 per cent to 377p, its highest price since August 2001. Britain’s biggest fixed-line company posted second-quarter earnings before interest, taxes, depreciation and amortisation of £1.43 billion after adding subscribers to its new sports channels.

Stocks rose to their highest level in more than five years, with the Stoxx Europe 600 Index gaining for a second month up 0.5 per cent to 322.37, its highest level since May 22nd, 2008.

The gauge rallied 3.8 per cent in October, its eighth monthly increase this year. National benchmark indexes rose in 11 of the 18 western European markets.

BNP Paribas rose 3.4 per cent to €54.54 after France’s largest bank posted an unexpected increase in earnings as it set aside fewer provisions for bad debts and pared costs.

Anheuser-Busch InBev gained 2.8 per cent to €76.60. The world’s biggest brewer said consolidated earnings before interest, taxation, depreciation and amortisation rose 10.5 per cent in the three months through September 30th.

Novo Nordisk dropped 7.4 per cent to 914 kroner. The world’s biggest insulin maker reported third-quarter profit that missed estimates on slower-than-expected growth of its Victoza diabetes treatment.

Technip tumbled 10 per cent to €77.15, its sharpest decline since December 2008. Europe’s largest oilfield-services provider reduced full-year targets after missing estimates for third- quarter profit.

US stocks were little changed in early trading, after the S&P 500 erased an earlier loss, as investors assessed corporate earnings and speculated on when the Fed would cut stimulus.

The S&P 500 rose 0.1 per cent to 1,764.44 by lunchtime in New York, erasing an earlier drop of as much as 0.4 per cent. The Dow Jones Industrial Average lost 0.14 at noon.

Visa lost 2.9 per cent to $197.85. Fourth-quarter net operating revenue rose 8.9 per cent to $2.97 billion, missing the $3.02 billion average estimate of analysts.

Avon tumbled 21 per cent to $17.65. The world’s largest door-to-door cosmetics seller posted a third-quarter net loss.

Uniphase, the provider of network analytics for the telecommunications and broadband industries, fell 9.5 per cent to $13.35.

Expedia rallied 17 per cent to $58.26. Adjusted earnings were $1.43 a share in the third quarter, the online travel company said in a statement. – Additional reporting, Bloomberg