Week ends on upward trajectory

Eurostoxx 50: 2,496.10 (+0.51%) Paris CAC: 3,435.09 (+0.69%) Frankfurt DAX: 7,231.85 (+0.44%)

STOCK MARKETS finished the week on an upward trajectory, after gains made in afternoon trading managed to cancel out a shaky start to the day.

Economic data from the US bolstered confidence in the world’s largest economy, offsetting investor concerns about earnings by companies including Apple.

The US Commerce Department figures showed GDP, the value of all goods and services, rose at a 2 per cent annual rate, beating the median economist forecast of a 1.8 per cent gain, after climbing 1.3 per cent in the prior quarter.

The US data followed Thursday’s report that the British economy had expanded at the fastest pace in five years.

DUBLIN

THE ISEQ closed fractionally up on a day when its largest stock, cement-maker CRH, closed flat.

It was a poor session for the two Dublin-listed airlines, with Ryanair falling 1.4 per cent to €4.47. It reports second-quarter numbers on Monday week. Aer Lingus, meanwhile, declined 5.5 per cent to €1.04.

Drinks group CC dipped 1.1 per cent to €3.78, as investors continued to digest its interim earnings figures, while paper and packaging company Smurfit Kappa also had a sluggish session, finishing at €8.35, down 0.8 per cent.

There were better fortunes for food group Kerry, which advanced 1.6 per cent to €41.25, and industrial holdings group DCC, which finished up 1.8 per cent at €22.40.

LONDON

THE BLUE-CHIP FTSE 100 index closed little changed, but managed to erase an earlier sell-off.

It rose 1.66 points, or less than 0.1 per cent, to 5,806.71 at the close, cancelling out an earlier loss of as much as 0.9 per cent after US GDP figures topped forecasts. The gauge declined 1.5 per cent this week after company earnings disappointed investors.

Anglo American, one of the world’s largest mining groups, rallied 4.1 per cent after announcing the resignation of chief executive, Cynthia Carroll.

Weir Group climbed 1.7 per cent to 1,717 pence amid speculation that US rival Gardner Denver was studying options including a sale or a merger.

Chip-maker ARM Holdings fell 1.3 per cent after Apple’s profit forecast missed analyst estimates. ARM, whose chip designs power Apple’s iPhone, closed at 656.5 pence. The shares earlier fell as much as 2.9 per cent.

Burberry, the UK’s largest luxury maker, rose 1.7 per cent to 1,153 pence, after French rival PPR reported a 16 per cent increase in third-quarter sales and said it was confident of revenue and profit growth in 2012.

Man Group climbed 2.3 per cent to 81.85 pence, extending Thursday’s 3.9 per cent advance. Reports in the British press cited takeover speculation for the hedge-fund manager’s gain.

Asos, the largest online-only fashion retailer, retreated 4.8 per cent to 2,215 pence after directors and other executives sold shares in the company.

EUROPE

NATIONAL BENCHMARK indexes advanced in 10 of the 17 western-European markets that were open yesterday, but there were no significant swings for the major markets.

France’s Cac 40 climbed 0.7 per cent, while Germany’s Dax gained 0.4 per cent.

Belgacom, the largest phone company in Belgium, advanced 7.8 per cent to €23.14, the strongest rally since it sold shares to the public in March 2004, as the company raised its 2012 forecasts and announced a special dividend.

Sweden’s Ericsson dropped 3.9 per cent to 58.15 kronor, the sharpest decrease since early May. The world’s largest maker of mobile-phone networks reported a third-quarter gross margin, or the percentage of sales remaining after production costs, that slid to 30.4 per cent from 35 per cent, missing the average estimate of 32.2 per cent.

Novo Nordisk. the world’s biggest insulin maker, fell 3.3 per cent to 930 kroner after US regulators disclosed that a scheduled advisory-panel meeting on the diabetes treatment Tresiba will focus on cardiovascular risks.

Renault fell 1.8 per cent to €34.74 euros, retreating for the sixth straight day, after third-quarter revenue plunged 13 percent to €8.45 billion, the carmaker said after the close of markets on Thursday. The figure missed analysts’ estimates.

NEW YORK

Stocks finished flat yesterday, recovering from moderate declines as bargain hunters lifted Apple off its lows and bought other stocks recently battered by disappointing results

Apple, the world’s largest publicly traded company, surprised analysts with its weak margin outlook, as well as with its quarterly earnings and iPad sales that fell short of expectations. The results were released after Thursday’s close.

Apple fell 0.9 per cent to $604 at the close in New York.

– (Additional reporting: Bloomberg / Reuters)