European stocks up on rebound in energy companies

C&C shares down 2 per cent after reporting drop in earnings

Apple shares were higher  after it posted a strong earnings report, driven by iPhone sales. Shares of Apple gained 2.5 per cent in New York. Photograph: Paul Miller/EPA

Apple shares were higher after it posted a strong earnings report, driven by iPhone sales. Shares of Apple gained 2.5 per cent in New York. Photograph: Paul Miller/EPA

 

US and European stocks rose on Wednesday ahead of the Federal Reserve’s decision, which investors hoped would clarify the central bank’s rate hike plans.

Apple was one of the big movers on Wall Street after it announced impressive results on Tuesday. European stocks rose, buoyed by a rebound in energy companies with BP and Royal Dutch Shell adding 1.5 per cent or more as oil rose from a two-month low after industry data showed declines.

DUBLIN The Iseq index of leading shares followed other European markets higher, ending the day up 58.08 points to 6,446.86. All eyes were on Hostelworld after the Irish website’s initial public offering in Dublin and London.

The offer price was set at 185 pence a share (€2.55), valuing it at about €245 million. Shares in the company, which will mainly trade in London, jumped to 198.5 pence where it stayed for most of the day. It closed at 198 pence.

Drinks group C&C reported another drop in earnings yesterday with operating profits for the six months to the end of August. Analysts said the group’s buyback programme stemmed a sell-off on a day in which 1.6 million shares were traded. C&C stock closed 2 per cent lower at €3.61.

Smurfit Kappa, which has been under pressure of late, closed up 2.8 per cent at €26.08 on strong data from China and positive reports from some of its peers. Bank of Ireland bounced back following the publication of CSO data showing that property prices and retail sales remain strong. It closed up 1 per cent at 34 cent. Iseq heavyweight CRH rose by more than 2.5 per cent to €24.85. Insulation manufacturer Kingspan was also up 2.5 per cent to €21.56.

LONDON Britain’s top equity index headed back towards two-month highs reached at the end of last week, lifted by gains in gold mining companies’ stocks and by BT and GlaxoSmithKline, which both rose after posting better-than-expected earnings.

The FTSE 100 closed up 1.1 per cent at 6,437.80. It remains down about 2 per cent on the start of the year and some 10 per cent below a record high of 7,123 points reached in April, partly due to the slowdown in China.

BT was up 3.3 per cent after the British Competition and Markets Authority provisionally cleared its deal to buy mobile operator EE. However, engineering group Meggitt slumped 20.5 per cent after a profit warning due to a downturn in its military division that compounded an already poor performance from its energy unit. Lloyds also fell 4.4 per cent after reporting weaker-than-expected results and setting aside another £500 million charge to compensate customers who were mis-sold loan insurance.

Dublin-headquarted but London-listed DCC closed down 0.5 per cent after it said it expects to see more acquisition opportunities.

EUROPE The pan-European Stoxx Europe 600 index climbed 1 per cent yesterday and is up 8.1 per cent in October. Saipem, an Italian oil and gas industry contractor, rallied 11 per cent after Eni agreed to sell a stake in the company to Fondo Strategico Italiano. Eni rose 2.2 per cent.

Volkswagen, the car maker plagued by an emissions scandal, rose 4 per cent after its namesake car brand lifted third-quarter margins. Heineken also added 4 per cent after its sales growth beat estimates.

NEW YORK Shares were higher, after Apple on Tuesday posted a strong earnings report, driven by iPhone sales. Shares of Apple gained 2.5 per cent in early trading while Twitter fell 1.7 per cent, trimming an earlier 11 per cent slide, after predicting weaker-than-estimated sales growth.

The Dow Jones industrial average rose 111.7 points, or 0.64 per cent, to 17,693.13, the S&P 500 gained 15.32 points, or 0.74 per cent, to 2,081.21 and the Nasdaq added 39.75 points, or 0.79 per cent, to 5,069.89.