European stocks up from two-week low

Markets rose as Italy met its maximum target for debt sales in an auction and orders for US durable goods excluding transportation equipment increased more than estimated in January.

DUBLIN

It was a quiet day for news-flow yesterday, which was reflected in a subdued day on the market. The Iseq closed flat to down on the day, at 3,722.14, down by 0.3 per cent or 10 points.

The big news was the European Commission’s rejection of Ryanair’s takeover bid of Aer Lingus, but this had been flagged in advance.

Ryanair closed down a touch on the day, by 0.7 per cent, at €5.62, with Aer Lingus also flat on the day at €1.25.

There was some other good news for Aer Lingus however, with Etihad’s acquisition of three pairs of Heathrow slots for $70 million from Indian airline Jet Airways.

CRH was an under-performer on the day, lagging its global peers by closing down 2 cent, or 0.2 per cent, at €16.65.

LONDON

UK stocks rose the most in a week with the FTSE 100 Index climbing by 55.44 points, or 0.9 per cent, to 6,325.88. The equity benchmark tumbled 1.3 per cent yesterday as Italy’s inconclusive polls fuelled concern the euro-area debt crisis will worsen.

Vodafone rose by 2 per cent to 165.1 pence after it was said to put on hold its takeover approach for Kabel Deutschland Holding.

Weir Group jumped 7.3 per cent to 2,322 pence, the highest level since at least 1989, after the company said in a statement it sees “double-digit” dividend growth and increased cash generation in 2013. Bwin.Party Digital Entertainment jumped 8.9 per cent to 150 pence and 888 Holdings surged 4.3 per cent to 156.75 pence. The British betting companies rallied after New Jersey Governor Chris Christie signed legislation authorising online gambling in his state, in a bid to boost revenue at Atlantic city casinos.

EUROPE

European stocks climbed, rebounding from the lowest level in more than two weeks, as earnings beat estimates.

The Stoxx Europe 600 Index gained 0.9 per cent to 287.25 after earlier falling as much as 0.3 per cent. The gauge dropped 1.3 per cent yesterday to the lowest level since February 7th after Italy’s election stalemate sent the country’s borrowing costs to a four-month high.

“We remain overweight on equities,” Andrew Garthwaite, a global equity strategist at Credit Suisse Group AG in London, wrote in a report. “Our tactical indicators for equities have been consistent with a period of consolidation, but we would use this as a buying opportunity. Global earnings revisions have recently started to improve, in line with stronger economic momentum”.

Germany’s DAX gained 1.1 per cent, France’s CAC 40 increased 1.9 per cent, and the UK’s FTSE 100 advanced by 0.9 per cent. Italy’s FTSE MIB Index rose by 0.9 per cent as the country sold €6.5 billion of securities at its first bond auction since the countrys inconclusive elections.

EADS advanced 6.6 per cent to €37.18, the highest price since the shares started trading in July 2000. The company reported a 68 per cent gain in full-year earnings before interest, taxes and one-time items to €3 billion.

NEW YORK

US stocks rose, sending the Standard and Poor’s 500 Index higher for a second day, as better-than-estimated housing data bolstered economic optimism.

FedEx, operator of the world's largest cargo airline and an economic bellwether, added 2.1 per cent to pace gains in transportation shares. Priceline.com, the biggest online travel agency by market value, added 3 per cent after revenue growth in international markets pushed profit past estimates. Target slumped by 1.2 per cent as earnings fell amid the worst holiday-season store sales performance in four years. – (Additional reporting Bloomberg)