European values decline on US data

European stocks dropped, paring a weekly gain, as investors weighed better than estimated US jobs data against the probability of an easing in Federal Reserve stimulus sooner than estimated.

DUBLIN
The Irish market closed up 0.2 per cent or almost 9 points higher at 4,437.09 yesterday, ending a busy week on a good note.

International Consolidated Airlines had some good numbers out yesterday morning, boosting Aer Lingus and Ryanair. Both airlines finished the day up, at €1.43 and €5.76 respectively.

There was also a "bit of bounce" in Bank of Ireland according to one analyst, which was weak on Thursday and yesterday morning due to the ECB interest rate cut. The stock closed up 1.52 per cent at 26 cent.

Smurfit Kappa gave up a little bit of ground, falling nearly 1 per cent to €17.73.

LONDON
Britain's leading share index edged higher late in the afternoon as much stronger than expected US jobs data suggested growth in the world's largest economy was gaining pace.

Positive updates from airline IAG and the world’s second-largest maker of aircraft engines, Rolls Royce, sent the two heavily-traded stocks to the top of the FTSE 100 .

IAG climbed 8 per cent in volume nearly 2½ times its average for the past three months after saying its third-quarter profit more than doubled, paving the way for a bumper full-year earnings forecast.

Rolls-Royce added 3.4 per cent after lifting the profit outlook for its aerospace defence unit.

Aberdeen Asset Management and Schroders dropped at least 2 per cent each, following European financial-services peers lower.

The FTSE 100 rose 11.20 points, or 0.2 per cent, to 6,708.42 at the close of trading in London, after earlier losing as much as 0.7 per cent.

EUROPE
European shares edged lower, with France underperforming after a rating downgrade, although many investors felt increasing signs of a world economic recovery would support equities in the longer term.

France’s CAC-40 index was the worst-performing major European market, after credit rating agency Standard & Poor’s cut its rating on France by one notch to AA from AA+.

Commerzbank posted the largest advance in three months after reporting third-quarter profit that surpassed analysts' estimates.

ArcelorMittal surged the most in almost two years as earnings increased at the world’s biggest steelmaker.

The Stoxx Europe 600 Index added 0.4 per cent to 322.72 this week, while Germany’s DAX added 0.8 per cent. France’s CAC 40 dropped 0.3 per cent.

US
Stocks jumped in early trading, bouncing back from a sell-off in the previous session after an unexpectedly strong payrolls report supported views that the world's largest economy is stronger than previously thought.

Futures had fallen after data showed 204,000 jobs were created last month, much more than the expected 125,000, as it increased chances the Federal Reserve could pare its stimulus before the end of the year.

Financial stocks led gains on the S&P 500 with a 1.6 per cent advance, following a more than 1 per cent drop in the sector on Thursday, on the expectation that higher rates will translate into stronger earnings.

JPMorgan Chase added 3 per cent while Wells Fargo, Bank of America and Citigroup were up more than 2 per cent in early trading. Disney shares rose 3 per cent after its profit jumped to beat Wall Street expectations, lifted by higher visitor spending at US theme parks, increased product sales and its summer animated movie hit Monsters University. – Additional reporting: Bloomberg, Reuters