Danish jeweller Pandora helps put shine on indices

Eurostoxx 50: 2,335.06 (–9.09) Frankfurt DAX: 6,016.07 (–4.57) Paris CAC: 3,169.62 (–4.67)EUROPEAN STOCKS were flat yesterday, as the region's leaders gathered in Brussels for the second summit in four days to address the debt crisis and after US durable-goods orders and home sales topped forecasts.

The benchmark Stoxx Europe 600 Index rose slightly at the close of trading.

The measure has rallied from this year’s low amid speculation policymakers will reach agreement on a solution to the region’s debt woes.

“There is scope for great disappointment” from the summit, Gary Jenkins, head of fixed income at Evolution Securities in London, said. “Though, if there seems to be general agreement on the bigger scheme and a tight timeframe for the details to be worked out, markets may give them the benefit of the doubt.”

German law makers backed increasing the bailout fund’s capacity yesterday, removing one hurdle in the path of a regional agreement.

The Stoxx 600 pared an earlier gain of 1.2 per cent as an official said EU talks with banks on bondholder losses as part of a second Greek rescue package are deadlocked and have been suspended.

Pandora, a Danish jewellery maker, advanced 12 per cent to 47.90 kroner.

Merck advanced 8.5 per cent to €65.07, the biggest gain since January 2009. The German maker of cancer drug Erbitux reported third-quarter profit that beat analysts’ estimates.

Telenor climbed 5.3 per cent to 97.40 kroner as the largest phone company in the Nordic region boosted its outlook for full-year sales and profitability after third-quarter earnings increased.

Nyrstar declined 8.5 per cent to €6.14 in Brussels, the biggest drop in two months. The zinc producer lowered its forecast for output from mines because of lower than expected deliveries from Talvivaara Mining’s Finnish site.

Adidas, the world’s second-biggest sporting goods maker, slid 3 per cent to €49.68 as Morgan Stanley cut its recommendation on the shares.

Areva fell 3.2 per cent €21.38 as the world’s largest builder of atomic plants said its FBFC International subsidiary may progressively close its nuclear fuel fabrication site in Dessel, Belgium, citing overcapacities on western European markets. – (Bloomberg)