Values rise on strong global data

WORLD STOCK markets rose yesterday and the euro strengthened, buoyed by strong first-quarter earnings from US firms and reduced concerns about Spain’s debt burden.

DUBLIN

The Iseq index finished the week higher in line with global trends, with the Irish index closing up just over a half a per cent higher at 3,232.

Paddy Power rose 1 per cent to €49.02 following positive first quarter figures from peer companies Ladbrokes and William Hill.

CRH advanced 2 per cent to €15.15 after the building materials company had its rating outlook changed to stable from negative by Moody’s.

Independent News Media advanced again, following the resignation of chief executive Gavin O’Reilly, adding 7 per cent to €0.262.

LONDON

UK stocks also gained, extending the FTSE 100 Index’s first weekly advance in a month as retail sales increased at the fastest rate in more than a year and mining companies rallied with copper.

The FTSE 100 rose 0.5 per cent to 5,772.2 at the close in London, extending its advance this week to 2.1 per cent.

The index posted its first weekly advance since March 16th as demand increased at a Spanish debt sale and the International Monetary Fund increased its prediction for global growth.

The stock market was also bolstered by strong retail figures. The Office for National Statistics said that UK retail sales, including gasoline, gained 1.8 per cent from February as the warmest March for half a century boosted purchases of clothing.

Mining companies Kazakhmys and Vedanta Resources both gained more than 2 per cent as copper rose in London amid declining stockpiles in China.

Man Group rebounded from a 12-year low as Bank of America recommended the hedge-fund manager.

Severn Trent advanced for a fifth day.

William Hill increased 4.3 per cent to 278.3 pence, its highest price since May 2008 as first-quarter net revenue jumped 12 per cent from a year earlier. Oriel Securities raised its recommendation for the bookmaker to hold from reduce.

EUROPE

European stocks also capped the first weekly gain since mid-March. The International Monetary Fund raised its forecasts for global economic growth as corporate earnings in the United States beat estimates and German business confidence improved.

Vestas Wind Systems A/S rallied 10 per cent on speculation it may be acquired by its Chinese rivals.

However, Repsol, the Spanish oil company whose Argentine unit was nationalised, fell 15 per cent. Cable and Wireless dropped 14 per cent after India’s Tata Communications decided against making an offer for the British network operator.

The Stoxx Europe 600 Index advanced 1.7 per cent to 257.79 this week, after four weeks of losses.

The benchmark gauge has climbed 5.4 per cent so far this year.

The European Central Bank disbursed more than €1 trillion to the region’s financial institutions as US economic reports topped estimates and Greece secured a second bailout.

National benchmark indexes advanced in 13 of the 18 western European markets.

Germany’s Dax added 2.5 per cent and France’s CAC 40 was little changed. Spains Ibex 35 Index lost 2.9 per cent.

Glencore rallied 5.9 per cent, leading a gauge of European commodity companies higher. Xstrata also rose 5.9 per cent.

International Power added 3.3 per cent at the end of a week in which GDF Suez agreed to pay £6.4 billion for the 30 per cent stake in the British utility that the company does not already own.

NEW YORK

US stocks rose, snapping a two- day decline for the Standard Poors 500 Index as profits from companies, including Microsoft and General Electric, beat estimates.

Microsoft, the world’s largest software maker, jumped 5.4 per cent after the company reported net income of 60 cents a share, amid better than expected sales of Windows and Office software for businesses.

General Electric added 1.9 per cent in early afternoon trade.

Oil firm Schlumberger said first-quarter profit rose 38 per cent as the number of US rigs drilling for oil reached a record. It rose by more than 4 per cent.

E*Trade gained the most in the SP 500, rising 7.4 per cent to $10.61, as quarterly profit and revenue exceeded estimates.

SanDisk lost 13 per cent after forecasting sales that were less than some analysts estimated.

McDonald’s added 2.1 per cent to $97.25. It reported a 4.8 per cent gain in first-quarter profits. – (Additional Reporting: Bloomberg)