European stocks avoid rout through cuts and innovation

Mixed fortunes for US stocks due to growth in economy and a drop in oil prices

Flying high: Aer Lingus finished up 3.14 per cent at €1.48, while Ryanair surged 7.66 per cent to €8.18. Photograph: Niall Carson/PA Wire

Flying high: Aer Lingus finished up 3.14 per cent at €1.48, while Ryanair surged 7.66 per cent to €8.18. Photograph: Niall Carson/PA Wire

 

US stocks fluctuated, after a monthly advance pushed benchmark indexes to records, as growth in manufacturing reinforced strength in the American economy while a drop in oil prices weighed on energy companies.

Meanwhile in Europe the reporting season is not turning into the rout investors feared as many of the largest companies managed to navigate weak demand through cost cuts and innovation to deliver earnings in line with or ahead of downbeat forecasts. In Dublin the Iseq finished up 1.3 per cent or 61.86 points at 4,824.99.

DUBLIN

RyanairAer LingusC&CSmurfit Kappa, Paddy Power

LONDON

British AirwaysInternational AirlineseasyJetRyanairEasyJetIAG

Meanwhile state-backed Royal Bank of Scotland dropped 7.8p to 380.2p after a broker note downgraded the lender to sell following the boost to the share price on third-quarter results last week.

The biggest risers on the FTSE 100 Index were easyJet up 40p to 1540p, Petrofac up 20p to 1080p, TUI Travel up 7.4p to 406p and Intercontinental Hotels Group up 36p to 2405p.

The biggest fallers on the FTSE 100 Index were Associated British Foods down 83p to 2671p, Centrica down 7p to 295.5p, Kingfisher down 7p to 295.5p and Standard Life down 8.6p to 385.1p.

EUROPE

Thomson

Cyclical stocks – whose performance is closely linked to the economic cycle – have delivered better results than forecast after analysts downgraded their expectations in line with growing fears over the state of the economy last month.

“We are not by any means saying we are suddenly seeing a very strong growth environment for cyclicals but it’s just that perhaps the pessimism in estimates going into the number was a little bit too much,” said Dan Ison, head of pan-European equities at Threadneedle Investments.

NEW YORK

AIG, Time Warner, and Walt Disney are among more than 80 S&P 500 companies posting financial results this week. Five out of 10 major industries in the S&P 500 rose, with utilities and technology companies climbing more than 0.5 per cent.

Apple climbed 1.3 per cent to $109.44. The company was holding calls with investors this week to discuss a bond sale, according to a person familiar with the matter Bloomberg said. – Additional reporting Bloomberg, Reuters