L'Oreal figures help markets extend gains

Eurostoxx 50: 2,921.43 (+63.82) Frankfurt DAX: 7,249.19 (+209.88) Paris CAC: 4,004.62 (+96.04)EUROPEAN STOCKS rose the most in a month yesterday, after results from Intel to PSA Peugeot Citroen and L'Oreal spurred investor optimism in the economic recovery.

“We continue to believe that the general trend of the stock market will be higher,” said Kully Samra, who manages UK-based clients for Charles Schwab, which has $1.5 trillion in assets. “European stocks appear to be attractively valued.”

Of the 30 companies in the Stoxx 600 that have reported earnings since April 11th, 20 have beaten estimates for per-share profit, according to data compiled by Bloomberg.

L’Oreal gained 3.2 per cent to €85.88 after the cosmetics maker reported first-quarter sales growth that beat analysts’ estimates as customers bought more Maybelline makeup and Ralph Lauren fragrances.

Telecity rose 1.5 per cent to 523p after VMware, the biggest maker of programs that let computers run multiple operating systems, reported first-quarter profit that topped analysts’ estimates as it benefited from a foray into storage and desktop software.

Peugeot, Europe’s second biggest car maker, climbed 4.7 per cent to €28.45.

Fiat jumped 4.6 per cent to €6.58 as the owner of the Ferrari marque posted first-quarter earnings before interest, taxes and one-off items of €251 million.

Bic surged 6.9 per cent to €64.36. The world’s biggest maker of disposable pens reported an increase in first-quarter net income to €53.9 million from €35.4 million a year earlier.

HSBC climbed 1.8 per cent to 651.8p as Morgan Stanley advised buying the shares of Europe’s largest bank.

Temenos sank 5.9 per cent to 30.10 francs, its biggest decline in two months, as the banking software maker reported a first-quarter loss of $10.9 million and executives sold shares.

Greek banks fell as a German official said the Mediterranean nation will probably have to restructure its debt.

National Bank of Greece slid 4.2 per cent to €5.24. EFG Eurobank Ergasias plunged 8.5 per cent to €3.36 and Alpha Bank tumbled 8.4 per cent to €3.58.

Banca Popolare di Milano Scarl tumbled 8.6 per cent to €2.31. – (Bloomberg)