European shares climb as oil prices rise

Oil prices tip over the $40 a barrel mark boosting market confidence

Kerry Group rose 2.3% to €84.05 after French food company Danone reported first-quarter results showing a 3.5% increase in like-for-like sales

Kerry Group rose 2.3% to €84.05 after French food company Danone reported first-quarter results showing a 3.5% increase in like-for-like sales

 

European shares climbed to a three-month high as oil rose to more than $40 a barrel, and a number of corporate results for the first quarter beat projections.

The Iseq in Dublin joined in the fun, rising 0.8 per cent to 6,921.44 to recover from straight sessions of losses.

DUBLIN

Kerry GroupDanone

Banking stocks were also well bid, with Bank of Ireland advancing 2.1 per cent to 24.5 cents, having threatened to fall to its lowest level in almost two years on Monday. Permanent TSB gained 1.9 per cent to €2.68.

Shares in property real-estate investment trusts were also active. Investec analysts said demand for Irish property assets will remain buoyant this year, fuelled by retail assets on the back of growing consumer spending. Green REIT gained 0.2 per cent to €1.41 and Hibernia REIT rose 0.2 per cent to €1.29. Irish housebuilder Cairn Homes gained 0.4 per cent to €1.16 in London after its chief executive, Michael Stanley, said the company’s focus now is on developing sites, having spent the early period since its stock market flotation last year on accumulating sites.

LONDON

Tullow

Mining stocks such as Anglo American, Antofagasta and Glencore advanced 7.5 per cent to 8.5 per cent, on economic signals coming from China, the leading global consumer of metals. Rio Tinto rose 2.8 per cent even though it cut its 2017 production guidance from its Australian iron ore mines. Associated British Foods increased 2 per cent after reporting earnings that beat analyst estimates as improved results from its sugar business offset a decline in profit at its Primark discount retail chain.

EUROPE

L’Oreal rallied 4.8 per cent as it said it would outperform the market in 2016 after first-quarter sales rose more than expected. Danone rose 3.9 per cent after posting better-than-estimated first-quarter revenue growth.

Swiss pharmaceuticals company Roche Holdings added 1.7 per cent after reporting higher quarterly sales.

But it wasn’t all good news on the corporate earnings front. Zalando, Europe’s biggest online fashion retailer, lost 3.1 per cent after the German company’s revenue missed analysts’ projections.

NEW YORK

Netflix tumbled 11 per cent, the most since August, after its forecast indicated weakening subscriber growth in the second quarter. International Business Machines Corp retreated 6.2 per cent, the biggest drop since January, as its second-quarter profit estimate was short of projections. Philip Morris lost 1.3 percent after the cigarette and tobacco group’s earnings fell short of estimates. Bucking the trend, Johnson & Johnson rose 2.7 per cent to an all-time high of $113.95 after it beat quarterly earnings forecasts.

Goldman Sachs, the worst performer in the Dow Jones Industrial Average this year, climbed 1.5 per cent after offsetting a plunge in first-quarter revenue by cutting costs deeper than analysts predicted and vowing to do more if needed.

(Additional reporting: Bloomberg/Reuters)