European stocks rise on US optimism

US GDP grew at a revised 4.6 per cent annualised rate in the second quarter

Banana importer Fyffes surged 2.34 per cent to €1.095 following news it and Chiquita Brands International have agreed new terms for an all-share merger. Photograpr: Simon Dawson/Bloomberg

Banana importer Fyffes surged 2.34 per cent to €1.095 following news it and Chiquita Brands International have agreed new terms for an all-share merger. Photograpr: Simon Dawson/Bloomberg

 
Europe

The news had a positive knock-on effect on European stocks, as the US is one of the biggest markets for goods and services produced in the euro zone.

DUBLIN

FyffesChiquita Brands InternationalCutraleSafra

Low-cost airline Ryanair, which predicted on Thursday that full-year profit would be at the upper end of its €620 million to €650 million guidance, gained 1.03 per cent to end the day at €7.465. In the same sector, Aer Lingus slid 1.04 per cent to €1.425.

Multi-national packaging group, Smurfit Kappa, added 1.12 per cent to close at €7.465.

LONDON

Shire

Airline Easyjet rose 3.2 per cent to 1,393 pence. J Sainsbury fell 2.8 per cent to 250.7 pence. The company’s share of the grocery market fell to 16.2 per cent from 16.3 per cent a year earlier, according to figures released market monitoring specialist, Nielsen.

Overall UK consumer spending at leading supermarkets declined 1.6 per cent year-on-year in the four weeks to September 13th, Nielsen said.

Wm Morrison Supermarkets slid 1.6 per cent to 171.3 pence. Sales declined 2.2 per cent in the 12 weeks to September 13th and its market share fell to 11 per cent from 11.2 per cent, the Nielsen report showed.

De La Rue lost more than a quarter of its value as it warned that profits will slump by £20 million in the current financial year due to deteriorating trading conditions. Shares slumped by a third to 504 pence.

EUROPE

TotalTahiti

Air France-KLM slid 1.6 per cent to €7.50. The airline’s board called on striking pilots to resume their duties, saying that demands for a single contract aren’t compatible with the low-cost model it is pursuing.

Allianz declined 6.1 per cent to €128.30 in Frankfurt, the most in almost three years. The German insurer that owns Pacific Investment Management Company (Pimco) slid after Bill Gross, Pimco’s co-founder and chief investment officer, quit to join Janus Capital Group.

NEW YORK

The stock surged 43 per cent to $15.89 on volume of 79.6 million shares, many times its 50-day average of 2.3 million and making for the most active day in the stock’s history. With the day’s advance, Janus shares moved to their highest level in more than four years. Gross’s move came as a surprise.

Yahoo had been trading modestly higher but then turned sharply higher. It rose as much as 4.6 per cent before paring its gains modestly, last trading up 4.4 per cent at $40.66, where it remained one of the S&P 500’s biggest percentage gainers. Volume of 30.1 million shares was on track to surpass its 50-day average of 33.2 million. AOL rose 3.7 per cent to $44.55.

Additional reporting Bloomberg, Reuters