Société Générale results boost European stocks

Swiss-Irish food group Aryzta up 2% on purchase of Hungarian bakery company Fornetti

Germany’s DAX Index: rose 1.6 per cent on Wednesday while Italy’s benchmark FTSE MIB Index closed up 1.9 per cent, the most among major western-European markets. Photograph: Reuters/Stringer

Germany’s DAX Index: rose 1.6 per cent on Wednesday while Italy’s benchmark FTSE MIB Index closed up 1.9 per cent, the most among major western-European markets. Photograph: Reuters/Stringer

 

European stocks climbed for the sixth time in seven days, led by a gain in commodity producers and a sharp rise in Société Générale shares after it reported its highest profit since the financial crisis.

Italy’s benchmark FTSE MIB Index closed up 1.9 per cent, the most among major western-European markets. France’s CAC 40 Index climbed 1.7 per cent and Germany’s DAX Index rose 1.6 per cent.

US stocks rose for the first time in four days, amid better-than-estimated earnings from technology companies and services-industry data which indicated that the economy is on track for faster growth.

DUBLIN The Iseq index followed other European indices higher, ending the day up 1 per cent or 72.02 points at 6,703.38.

Swiss-Irish food group Aryzta, which seems to be making something of a comeback after its recent tumble, closed the day up by more than 2 per cent at €49 following its announcement that it had acquired the Hungarian frozen bakery products company Fornetti. This is still considerably lower than the €73 mark the Cuisine de France owner hit in March however.Building materials group CRH closed up 2 per cent at €28.09 on the back of positive results from many of its international peers.

Other movers included Glanbia, which ended the day up 1.6 per cent at €18.93 and Ryanair, which was up more than 2 per cent at €13. Kerry, which releases its latest results on Thursday, rose 1 per cent to €71.35.

LONDON Britain’s top share index rose on Wednesday, boosted by better than expected results from Legal & General and London Stock Exchange, and by a rebound in the mining sector.

The FTSE 100 closed up 1 percent at 6,752.41 points – some 5 per cent below a record high of 7,122.74 points reached in April. Insurer Legal & General advanced 2.8 per cent after topping forecasts with an 18 per cent jump in operating profit, helped by a strong performance in the bulk annuity market. London Stock Exchange Group also gained 1.6 percent after beating expectations as profit after tax rose 21 per cent.

Standard Chartered ended up 0.2 per cent in a volatile session, lower than before it released results in mid-morning trade. The Asia-focused bank fell sharply before rising as much as 6.5 per cent as investors digested the update.

EUROPE European stocks continued their recent surge with the Stoxx Europe 600 Index rising 1.3 per cent to 404.02.

Shares of Société Générale, France’s second-largest bank by market value, rallied 8.5 per cent after it reported its best results since the economic crisis. Elsewhere, UniCredit jumped 6.4 per cent after Italy’s biggest bank reported an increase in quarterly profit. Mediobanca rose 1.8 per cent after raising its dividend.

Beiersdorf was up 3.7 per cent as the maker of Nivea cream and Labello lip balm reported profit that topped analysts’ estimates. ING Groep fell 3.5 per cent as the biggest Dutch lender posted net income that missed analysts’ projections. Neste Oyj lost 8.9 per cent as profit fell short of estimates. NEW YORK US stocks bounced back after a somewhat lacklustre start to the week on the back of better-than-expected results from a number of companies.

Cognizant Technology Solutions and First Solar jumped at least 6.5 per cent after their profits exceeded analysts’ forecasts. Apple climbed for the first time in six sessions, up 1.8 per cent. Priceline added 5.4 per cent as its earnings topped estimates. Disney slid 8.7 per cent after its quarterly sales missed projections.

The Standard and Poor’s 500 Index rose 0.6 per cent to 2,105.05 in early trading . The Dow Jones Industrial Average climbed 34.01 points, or 0.2 per cent, to 17,584.70. The Nasdaq Composite Index advanced 1 per cent. Additional reporting, Agencies