Eurostoxx 50: 2,911.33 (+1.55) Frankfurt DAX: 6,946.36 (+12.78) Paris CAC: 3,972.38 (+3.54)
EUROPEAN STOCKS rose for a third day, extending the Stoxx Europe 600 Index’s biggest weekly gain since September, as American technology companies posted better than estimated earnings and US growth was revised higher.
“The situation in Japan was quickly stabilised,” said Matthieu Giuliani, a fund manager at Palatine Asset Management in Paris, which oversees $5.6 billion. “Many investors were looking for an entry point. Valuations aren’t high and that’s a support for stocks, but there isn’t anything to get overly excited about.”
SAP gained 1.9 per cent to €42.95 after Accenture, the world’s second-largest technology-consulting company, gave a sales forecast for this quarter that exceeded analysts’ estimates and Oracle projected fourth-quarter profit that topped analysts’ predictions.
Atos Origin, France’s second-biggest provider of computer services, added 2 per cent to €43.29.
Construction stocks climbed, following gains in Asia, amid optimism that demand would increase as Japan rebuilds.
Saint-Gobain, Europe’s biggest provider of building materials, increased 1.1 per cent to €43.46.
Holcim, the second-largest cement maker, rose 1.3 per cent to 69.15 Swiss francs.
French broadcasters TF1, owner of France’s most popular TV channel, dropped 3.5 per cent to €12.97 and M6-Metropole Television declined 1.5 per cent to €18.20. Analysts said the broadcasters will face increased competition for advertising revenue after Canal Plus announced plans to start its own free channel.
HMV surged 4.5 per cent to 17.5p as Sky News reported that the company has been approached by Hilco UK, a specialist in distressed retailers.
Drax, owner of the UK’s largest power station, rose 4.2 per cent to 387.4p, rebounding from four days of losses. Britain’s new tax on carbon dioxide may fail to reduce power generation from coal, according to Evolution Securities.
Reckitt Benckiser increased 3.1 per cent to 3,160p.
Credit Agricole rallied 2 per cent to €12.18 after Exane BNP Paribas initiated coverage of France’s third-largest lender with an “outperform” recommendation. – (Bloomberg)
