European values continue advance

AS SUPERSTORM Sandy roared on, closing markets for a second day in New York, European markets stormed ahead with a key European equity index reaching its highest level in more than a week.

Strong corporate earnings boosted the market, although volumes were still weak as traders approached the last day of the month and the US market remained closed.

DUBLIN

THE ISEQ index of Irish shares gained 0.91 per cent, in line with the market generally, though volumes were low.

Food related stocks were among the best performers.

Kerry Group saw strong volumes early on in the session, though it finished only marginally higher at €41.45, up 0.2 per cent. The food ingredients company will publish an interim management statement today.

There were some buyers around in Glanbia, which is preparing for a series of shareholder votes next month on the company’s proposed joint venture deal with Glanbia co-op. The stock closed up a half a per cent at €7.60.

CC was strongly traded, trading around the €3.76 mark for much of the session, though it finished down slightly lower at €3.74.

Ryanair finished the session up 0.4 per cent at €4.50. As one trader noted, the company is entering an important month, during which it will update the market on its important quarter two performance. A special dividend of 34 cent is also due to be paid during the month.

Kenmare Resources bounced back, advancing 3 per cent to €0.49.

LONDON

UK STOCKS advanced the most in two weeks as BP reported earnings that exceeded analysts’ estimates and mining companies rebounded with metal prices.

The FTSE 100 Index added 54.8 points, or almost 1 per cent, to 5,849.9 at the close in London, its biggest rally since October 16th.

BP jumped 4.2 per cent after Europes second-largest oil company also increased its dividend payout.

Rio Tinto Group rose 2 per cent as copper climbed from an eight-week low. BHP Billiton gained 1.8 per cent after announcing a plan to expand its Australian iron-ore operations.

Vedanta Resources also gained 2 per cent to 1,150 pence, while Xstrata rose 1.4 per cent to 981.8 pence.

Barclays gained 3.4 per cent to 238.8 pence ahead of earnings figures today. Britains second-biggest bank may say pretax profit rose 25 per cent to £1.67 billion in the third quarter, according to analysts’ estimate, as revenue from the fixed-income arm of its securities unit jumped.