Iseq rises as major European stocks fall

European stocks fell following their longest streak of weekly losses in more than a year, as worse-than-estimated financial results added to concerns over the region’s economic recovery.

The CAC 40 Index dropped 1 per cent, while Spain's IBEX 35 Index lost 0.4 per cent. Germany's DAX Index retreated 1.5 per cent for the biggest decline among 18 western European markets. Britain's FTSE 100 Index fell 0.7 per cent.

In Ireland, the Iseq Overall Index bucked the trend, rising by 0.6 per cent to 4,514.29 on what traders described as "light volumes".

DUBLIN

Banana distributor

Fyffes

was one of the main movers of the day, with the stock up 4.25 per cent at €1.03. This came after shareholder proxy advisory group ISS did a U-turn on a previous recommendation about the Irish company’s merger with US rival Chiquita by saying the deal now represents the best value for stockholders.

Bank of Ireland rose by 3.5 per cent to 29.7 cent, an indication that investors are unconcerned about the outcome of the EU comprehensive assessments of the capital strength of 130 banks in the region. Those results are due on Sunday.

There were contrasting fortunes for the Irish airlines. Improved sentiment towards the sector across Europe helped to push Ryanair 1.7 per cent higher at €7.085 but Aer Lingus closed down 0.3 per cent at €1.35. Among the losers on the day was UTV Media which finished almost 2 per cent lower at €2.55 while Smurfit Kappa closed down 1.6 per cent at €15.45.

LONDON

UK stocks declined, as drops in

ARM Holdings

and

Royal Dutch Shell

outweighed

Tesco’s

gain. ARM lost 2.7 per cent as investors awaited the chip-design company‘s quarterly results today. Shell retreated 2.3 per cent.

Tesco

climbed 2.7 per cent after a report that private equity groups may bid for the grocer‘s Asian businesses.

The FTSE 100 dropped 43.22 points, or 0.7 per cent, to 6,267.07 at the close in London. The equity benchmark on October 17th climbed 1.9 per cent, paring its losses last week to 0.5 per cent. The gauge rallied to a 14-year high in May before falling as much as 9.9 per cent amid concerns about global growth, Ukraine and the spread of Ebola.

The FTSE All-Share Index slipped 0.6 per cent yesterday.

EUROPE

SAP

lost 5.8 per cent after it cut its full-year earnings forecast.

Royal Philips

declined 3.7 per cent after third-quarter sales and profit missed analysts’ estimates.

The Stoxx Europe 600 Index slid 0.5 per cent to 317.01 at the close of trading, after earlier falling by as much as 1.1 per cent. European equities have led a rout that erased as much as $5.5 trillion from the value of shares worldwide amid speculation that the European Central Bank's stimulus measures will not be enough to spur growth.

The benchmark index reached its lowest level of the year last week after an eight-day slump. It rebounded on October 17th, posting its largest rally since November 2011, as ECB executive board member Benoit Coeure said the central bank will start purchasing assets within days.

The region’s stocks gauge briefly pared losses earlier today after people familiar with the matter said the ECB bought short- dated French covered bonds, as well as Spanish debt.

Adidas rose 3.7 per cent to €56.67 after the Wall Street Journal said a group of investors was planning to bid about €1.7 billion for its Reebok unit.

NEW YORK Stocks rallied for a third day as optimism over corporate earnings spurred a rebound from last week's selloff. Apple, which rose 2.1 per cent during regular trading, gained after exchanges closed on higher-than-forecast sales. IBM slid 7.1 per cent after abandoning an earnings forecast for 2015. The Dow added 19.26 points, or 0.1 percent, to 16,399.67. The Nasdaq added 1.4 per cent. – Additional reporting by Bloomberg