US inflation, jobs data weigh on markets

Eurostoxx 50: 3,064.54 (+2.62) Frankfurt DAX: 7,381.74 (–32.56) Paris CAC: 4,140.20 (–11.06)

MOST EUROPEAN stocks fell yesterday, as US reports showed the cost of living climbed more than forecast and jobless-benefit claims exceeded estimates.

The Stoxx Europe 600 Index rose less than 0.1 per cent to 290.91 at the close in London as three stocks fell for every two that advanced.

The US consumer-price index increased 0.4 per cent in January, exceeding the 0.3 per cent median estimate of economists surveyed by Bloomberg. Last week’s first-time claims for unemployment benefits also rose more than expected.

Pernod fell 4.3 per cent to €67.61. The drinks company said earnings before interest and taxes, excluding the effect of acquisitions and disposals, rose 8 per cent in the six months ended December 31st, less than the average 9 per cent increase predicted by analysts surveyed by Bloomberg.

ABB slid 3.3 per cent to 22.41 Swiss francs. Fourth-quarter earnings before interest and taxes climbed 23 per cent to $978 million, trailing the average estimate of $1.09 billion by 22 analysts compiled by Bloomberg.

BAE Systems sank 4.2 per cent to 340.9p. Europe’s largest arms company forecast revenue will fall this year after reporting 2010 profit that missed estimates.

Schindler Holding sank 5.1 per cent to 105 francs, the biggest drop since May 2009. The world’s second-largest producer of elevators said that it would make less profit in 2011 than in 2010 because of restructuring costs in “weak markets” and the strong franc.

Cap Gemini surged 7.6 per cent to €42.89, the biggest gain since May. The computer-services company said full-year profit rose 57 per cent to €280 million ($379.2 million) on stronger demand for its technology, beating analysts’ estimates.

PPR climbed 2.2 per cent to €115.85. The French owner of Gucci and online retailer Redcats reported profit for 2010 that exceeded analyst forecasts after sales of luxury goods surged in the fourth quarter.

Technip advanced 1.9 per cent to €74.30.

Europe’s second-biggest oilfield-services provider swung to a profit in the fourth quarter and said demand for offshore, natural gas and refining projects was improving as the oil price rallied. – (Bloomberg)