US stocks rise as Fed says it will react if outlook for economic growth worsens

US stocks climbed yesterday as remarks from Federal Reserve chairwoman Janet Yellen bolstered confidence that the central bank will react if the outlook for economic growth worsens. European shares fell and the yen strengthened as tension increased in Ukraine. The Standard and Poor's 500 Index rose 0.2 per cent, above its record close for the fourth straight day, after earlier swinging between gains and losses.

The Stoxx Europe 600 Index declined 0.2 per cent as profit at WPP and Allianz missed estimates.

DUBLIN
The Iseq index finished up 0.63 per cent. UTV Media closed unchanged at €2.95. Investment holding company TVC Holdings said yesterday it had sold part of its stake in UTV Media for €22.1 million. TVC finished up 3.33 per cent at €0.93. Traders said the stock was "boosted," by the sale but also by news from Dalata, the hotel chain where TVC is a shareholder. The hotel group is reported to be hatching plans to raise up to €200 million through an initial public offering next month.

Ryanair was up 0.77 per cent to €7.34. Brokers said the airlines continuing buyback of its own shares was helping and that comments by chief executive Michael O'Leary about a plan to introduce transatlantic flights were "too early stage to make any difference".

Independent News & Media fell marginally by 0.61 per cent to 16 cent on news that its chief executive Vincent Crowley is planning to step down. A Dublin broker said the move was "not that surprising, there had been rumours for some time". Among other movers, Paddy Power fell by 0.91 per cent, to €59.01; Origin Enterprises rose by 2.28 per cent, to €7.23 while Bank of Ireland was up 1.42 per cent, at 36 cents.

LONDON
Royal Bank of Scotland fell 8 per cent after posting a loss, insurer Allianz dropped 2.3 per cent following difficulties at its Pimco unit and troubled insurer RSA fell 4 per cent after saying it will tap its shareholders for $1.29 billion of cash in a rights issue.

WPP fell 3.7 per cent as fierce competition in the global advertising industry forced the company to lower its profit guidance for 2014, wiping more than a billion pounds off its share price. On the positive side, British outsourcing company Capita rose 6.8 per cent after posting a 14 per cent rise in annual profits and saying it was confident about its prospects in 2014.

EUROPE
European shares fell and the yen strengthened as tension increased in Ukraine.

Veolia Environnement rose 8.2 per cent after the biggest European water and waste company said it aimed to increase adjusted operating cash flow by 10 per cent and post "significant growth" in profit this year.

GDF Suez advanced 6 per cent. France's largest gas supplier forecast net recurring income of at least €3.3 billion for this year, exceeding the €3.23 billion estimated by analysts.

Royal Ahold gained 4 per cent to €13.82. The Dutch owner of Stop and Shop and Giant stores said fourth-quarter underlying operational income fell less than analysts had expected as sales in the Netherlands increased.

NEW YORK
Best Buy , the world's largest electronics chain, rose 5.4 per cent after posting fourth-quarter profit that beat estimates. Verizon climbed 2.5 per cent as JPMorgan forecast shares of the wireless carrier may rise further over the next six to 12 months. Morgan Stanley resumed the coverage of the stock with a rating of overweight, the equivalent to buy.

Energy companies fell 0.3 per cent as a group, joining utilities as the only S&P 500 industries with losses. Transocean declined 2.3 per cent. Retailers J C Penney surged 25 per cent and Sears added 7 per ce nt. Mylan climbed 9.7 per cent. The generic-drug maker forecast 2014 revenue of at least $7.8 billion, exceeding the average analyst estimate of $7.72 billion. 3M gained 1 per cent. – (Bloomberg/Reuters)