Stocks fall on investors’ stimulus fears

Stock markets across

Europe

fell as investors speculated that central banks will ease back on stimulus measures and on a general weakness in Asian markets that fed through in the early part of the day.

The markets are waiting to see what sort of light economic data from the US might shed on the Fed’s plans to maintain its $85 billion monthly bond purchases. It is thought likely to cut this figure to $70 billion in March.

DUBLIN
Selling was generally the order of the day in Dublin with most leading stocks losing ground, dealers said at the close of business. International building materials giant, CRH, gave back some of the gains it made earlier in the week on the back of an interim management statement, falling 0.8 per cent to €18.80.

Ryanair, which is due to announce a new deal with Dublin Airport Authority today, fell 1.56 per cent to end the day at €5.695.

Packaging group, Smurfit Kappa, slid 1.38 per cent to close at €17.55. The stock hit lows of €17.30 before bouncing back. Dealers blamed general weakness in the sector.

Cider maker, C&C also gave back some of its recent gains, falling 1.22 per cent to €4.47. The stock has had a generally strong run in recent weeks.

LONDON
Standard Chartered lost 2.5 per cent to 1,448 pence after Mizuho Securities Asia advised investors to sell the shares.

ICAP jumped 4.1 per cent to 391.8 pence. The world's largest broker of transactions between banks predicted pretax profit before exceptional items for the 12 months through March 2014 will be "marginally ahead of the prior year."

Drax Group rose 2.6 per cent to 653 pence. The operator of the UK's biggest coal-fired power station forecast 2013 adjusted profit and earnings before interest, taxes, depreciation and amortisation will beat analysts' estimates.

Oil exploration and production group, Tullow, shed 2.17 per cent to close at 880.5 pence. The company issued an interim management statement confirming that it will add 200 million barrels to its resources by the year's end.

EUROPE
Stada Arzneimittel dropped 5.5 per cent to €37.88 for the biggest decline in more than a year. The drugmaker posted nine-month adjusted net income of €100.3 million, missing analysts' projection for €105 million.

Banco Popolare slid 6.1 per cent to €1.34. The Italian lender reported third-quarter net income of €9.26 million, missing analysts' estimate of €47.5 million.

UniCredit dropped 4.5 per cent to €5.21. Commerzbank decreased 2.4 per cent to €10.09. ProSiebenSat.1 tumbled 4 per cent to €32.09 after its largest shareholder cut its stake for the second time this year. A holding firm controlled by funds of KKR and Permira Advisers sold 35 million shares for about €1.1 billion at €31.53 apiece.

The private-equity firms had acquired ProSiebenSat.1 in 2006 and tried to sell the broadcaster earlier this year. After failing to find a buyer, they started selling the shares in the market. Mediaset tumbled 7.5 per cent to €3.50 for the biggest drop in eight months. The broadcaster posted a third- quarter net loss of €57.4 million.

NEW YORK
US stocks rose, with the S&P 500's advance led by department store operator, Macy's, which posted stronger-than-expected quarterly sales and earnings ahead of the holiday season. Macy's stock shot up 9.7 per cent to $50.81, after earlier touching a 52-week high of $50.95, and driving the S&P Consumer Discretionary Sector Index up 1.1 percent. In the same sector, Wal-Mart, due to report earnings today (Thu), advanced 0.3 per cent to $78.93.

Shares of Cisco Systems, the networking equipment maker, rose 0.6 per cent to $23.88 ahead of the company's quarterly results, which were expected after the close. – (Additional reporting: Bloomberg)