Four of Europe's leading banks reported third-quarter earnings this week but equity investors were cautious in the run-up to yesterday's US payrolls data and the market had its first weekly fall after five consecutive weeks of gains.
The FTSE Eurofirst 300 climbed 0.4 per cent yesterday but fell fractionally during the week to end at 1,448.42.
Commerzbank stock rose 4.3 per cent to €29.01 yesterday, benefiting from a brief wave of relief after the payrolls data suggested there was life in the US economy yet. The German group reported yesterday third quarter net profit ahead of forecasts and added it was on track to deliver one of the best full-year results in its history. Commerzbank rose 3.8 per cent during the week.
UBS, the Swiss investment bank, on Tuesday reported a worse than expected fall in net profit as equity trading revenues fell due to market volatility in the early part of the third quarter. Its shares fell 5.3 per cent during the week to SFr74.70.
Credit Suisse, the smaller domestic rival of UBS, fared a little better, as the market was cheered on Thursday by its forecast of a record earnings year.
Third-quarter earnings were boosted by fixed income trading,although it too reported a fall in equities trading revenue. Its shares rose 1.4 per cent in the week to SFr77.50.
Deutsche Bank's third quarter results also reflected weakness in equities trading, but overall earnings met market forecasts as strength in its wealth management division outshone investment banking.
The shares, however, were off 1.5 per cent during the week to €97.09.
Among other notable moves, DaimlerChrysler added 5.5 per cent to €45.64 during the week, largely on speculation that it would soon announce plans for its struggling US Chrysler unit.
Strategists poured cold water on suggestions the loss-making division would be sold off.
Ferrovial, the Spanish construction and services group that bought British airports operator BAA this year, on Monday reported an 86 per cent rise in nine-month underlying profit, helped by its UK acquisition.
Its shares made a weekly gain of 9.1 per cent to €74.05. -
