Deutsche's earnings help markets extend gains

Eurostoxx 50: 3,005.33 (+27.74) Frankfurt DAX: 7,475.22 (+70.27) Paris CAC: 4,104.90 (+37.18)EUROPEAN STOCKS rose for a sixth day yesterday, extending an eight-week high, as Deutsche Bank's earnings beat estimates and the Federal Reserve pledged to keep rates low for an "extended period".

“Equity markets are supported by powerful and strong earnings on the one hand and low interest rates on the other hand,” said Philipp Musil, who helps manage about $12 billion at Semper Constantia Privatbank in Vienna.

“The market ignores all other crises around us right now. There’s no alternative to investing in equities,” he said.

Deutsche Bank rose 4.6 per cent to €43.74 as net income climbed to €2.1 billion ($3.1 billion), the second-best quarterly result ever, from €1.8 billion in the year-earlier period, the Frankfurt-based bank said in a statement yesterday.

Suez Environnement rose 4.4 per cent to €15.58, the highest price in almost two months.

WPP gained 2.8 per cent to 781p. The world’s largest advertising company said first-quarter revenue increased 7 per cent, led by a faster than expected recovery in mature markets such as the US and Germany, and raised its full-year sales forecast.

Standard Life rallied for a sixth day, the longest winning streak since September 2010. The stock climbed 3.7 per cent to 227.2p.

Safran soared 6 per cent to €25.54. Europe’s second-largest maker of aircraft engines said first-quarter revenue jumped 11 per cent.

Kesko Oyj surged 8.3 per cent to €35.02, the biggest gain in nine months and the second-best performance in the Stoxx 600 yesterday.

Stagecoach advanced 4.5 per cent to 247.2p, the highest price in 2½ years.

ABB rose 3.8 per cent to 23.84 Swiss francs as Deutsche Bank recommended buying shares of the world’s largest maker of power-transmission gear.

SAP dropped 6.1 per cent to €42.89, the biggest decline since October 2009.

Unilever slid 2.6 per cent to 1,939p in London, ending five days of gains. The world’s second-biggest consumer-goods company reported first-quarter sales that missed estimates.

Erste Group Bank fell 2.7 per cent to €34.38, erasing the previous day’s gains. – (Bloomberg)