German data puts dampener on Dax

Disappointing data on factory orders from Germany put a dampener on the Dax today. The exchange, closed on Friday, might have been expected to play catch-up with its European peers today, but the numbers were poor.

Germany’s government bonds advanced on the news that factory orders had plunged, prompting concern that Europe’s largest economy is slowing. German 10-year yields approached their lowest level in a month as the data underlined the challenge faced by the president of the European Central Bank, Mario Draghi, in reviving growth.

DUBLIN

Index heavyweight CRH, the international building materials group, had a good day, with the gains registered on Friday in the US, after close of business here, cited by traders as the reason for its strong performance. The stock closed at €17.81, an increase of 1.1 per cent.

The Iseq, partly as a consequence, ended the day up 0.6 per cent, which was a credible performance.

Among the stocks that did well were Datalex, which rose 3.13 per cent to €1.65, and Tullow, which rose 5.23 per cent to €8.05. Bank of Ireland rose 0.65 per cent to €0.31, while Ryanair fell 0.88 per cent to €7.53. Bid target Petroceltic jumped 26 per cent on the day.

LONDON

Gains in major bank stocks led Britain's benchmark equity index higher, and troubled supermarket group Tesco rose after new board appointments. The blue-chip FTSE 100 index, which fell to its lowest closing level in nearly a year last week, closed up by 0.6 per cent, or 35.74 points, at 6,563.65 points.

Tesco, reeling from an accounting scandal, advanced by 2.7 per cent to 176.31p, as analysts welcomed the appointment of two non-executive directors to strengthen its boardroom.

Barclays added 3.4 per cent to 232.3p after the Sunday Express reported that the lender will cut 1,300 jobs and increase the automation of branches.

EUROPE

European stocks rose for a second day, paring gains in the last hour of trading. German factory orders fell more than forecast in August. Orders, adjusted for seasonal swings and inflation, declined 5.7 per cent from July, when they gained a revised 4.9 per cent, according to Germany‘s economy ministry. That’s the biggest slump since 2009.

The Stoxx 600 earlier pared gains after a report by the Sentix research institute showed that euro-zone investor confidence had fallen more than forecast. National benchmark indexes rose in 12 of the 18 western European markets. France’s CAC40 climbed less than 0.1 per cent, while Germany’s Dax was also little changed, reopening following a holiday on October 3rd.

Nokia rose 2.9 per cent to €6.84 after Microsoft said Samsung paid the US company $1 billion in royalties last year.

NEW YORK

US stocks fluctuated, following a second straight weekly decline for the Standard & Poor 500 index, as small-caps slumped to offset gains amid corporate deals. Alcoa unofficially starts the US earnings season this week when it reports third-quarter earnings. Eight other S&P 500 companies will post results this week.

Hewlett-Packard jumped 4.9 per cent to $36.92 after announcing that it was separating its corporate hardware and services operations.

CareFusion soared 23 per cent to $56.90. Becton, Dickinson agreed to pay $58 a share for the San Diego-based company that provides drug-management and patient-safety services to hospitals. That's a 26 per cent premium to its October 3rd closing price. Becton, Dickinson climbed 7.2 per cent to $124.12.

Durata rose 71 per cent to $23.80. Actavis, the drugmaker that made three acquisitions this year, said one of its subsidiaries will pay $23 a share for Durata. Actavis shares fell 0.8 per cent to $244.18.

(Additional reporting, Bloomberg, Reuters)