Stocks rise again as good results boost confidence

Eurostoxx 50: 2,942.43 (+3.41) Frankfurt DAX: 7,490.35 (-11.17) Paris CAC: 4,058.08 (+5.57):EUROPEAN stocks climbed for a second day yesterday as better-than-estimated results from Moeller-Maersk to Hermes International boosted confidence in the economic recovery.

Maersk jumped the most in eight months as the owner of the world’s largest container line said net income surged 85 per cent. Hermes gained 3.8 per cent after sales increased as wealthy consumers purchased more luxury watches and fragrances. ITV slid 4.9 per cent as the UK’s biggest commercial broadcaster forecast slowing advertising revenue growth.

Companies including Peugeot Citroen and Ericsson reported results that topped analysts’ estimates and the US Federal Reserve maintained its pledge to keep interest rates low for an extended period.

National indexes climbed in 13 of the 18 western European markets. France’s CAC 40 Index advanced 0.1 per cent and Germany’s DAX slid 0.1 per cent.

Maersk jumped 4.4 per cent to 51,500 kroner, the largest advance since September. The company posted first-quarter net income before minority interests of 6.35 billion kroner, compared with an average estimate of 4.89 billion kroner in a Bloomberg survey.

Hermes rallied 3.8 per cent to €167.80, the highest price since October. It reported first-quarter sales that increased 26 per cent, beating analysts’ estimates.

Bourbon rose 6.5 per cent to €34.70 in Paris, the largest gain in seven months. The owner of the second-biggest fleet of supply and crew ships for the oil industry reported a 24 per cent increase in first-quarter revenue.

Axel Springer jumped 2.3 per cent to €110.45 after Europe’s largest newspaper publisher said first-quarter profit before some items rose 6.5 per cent as international and online business revenue made up for a weaker German advertising market.

Kloeckner sank 7.6 per cent to €23.63 after the German steel trader operating in 15 countries said it planned a capital increase of as much as 50 per cent to finance growth.

Bekaert dropped 5.4 per cent to €79.02. The largest maker of steel cord used in tyres said Chinese demand slowed and it would cut prices to defend against increased local competition. – (Bloomberg)