Markets breathe a sigh of relief over payment from Evergrande

European stocks rose on Friday amid a surge in tech stocks, strong profits at L’Oréal in France and a big boost to sentiment provided by a surprise interest payment from China Evergrande, riddled with debts.

In the United States, markets fell after comments about Federal Reserve Chairman Jerome Powell’s cutbacks in stimulus measures spooked markets to record highs.

Dublin

The Iseq was up 0.75% on a dynamic day for European markets, although volumes became scarce as the start of the holiday weekend approached.

Bank of Ireland delivered the best of the biggest stocks, ending up almost 3.4% to € 5.22. The bank announced that it was acquiring a loan portfolio and accepting deposits from Belgian bank KBC, which is withdrawing from the Irish market. It acquires 8.8 billion euros in mortgage loans and collects 4.4 billion euros in deposits.

Travel software firm Datalex, backed by Dermot Desmond, rose 6.25 percent to 85 cents a share, as confidence returns in the aviation market it primarily serves.

Smurfit Kappa Group increased by nearly 2.3% to € 43.71.

London

The FTSE 100 rose 0.2%, driven by mining and consumer staples heavyweights, as surveys show the UK economy unexpectedly rebounded in October despite soaring costs and worsening supply shortages. Base metal miners and precious metal miners increased 0.2 percent and 2.4 percent, respectively.

Large dollar winning companies, manufacturer of spirits Diageo and Dove soap maker Unilever, were among the best performers as the pound fell, with data showing UK retail sales unexpectedly slumped for a fifth straight month in September.

JD Sports Fashion Plc added 1.9 percent like UBS Also raised its target for the share price of Britain’s largest sportswear retailer after it bought Cosmos Sport.

Supplier of building materials GIS jumped 5.6% after forecasting underlying operating profit for the full year to exceed market estimates.

London Stock Exchange Group fell 6% after the financial market infrastructure provider warned that supply chain shortages could affect the timing of its technology spending.

Europe

The Stoxx 600 added 0.5% to close over six weeks. News that Chinese real estate developer Evergrande had made a bond payment to avoid default has stirred up the mood around the world. Concerns about the contagion of a potential default have recently rocked the markets.

The French blue-chip Cac 40 rose 0.7% and outperformed its European peers, rising 5.1% in L’Oreal actions following the good results of the cosmetics business.

Shares in Dutch semiconductor equipment maker ASML and German software company SAP rose 3.2% and 1.2% respectively, after stumbling earlier this week in the wake of their results. The tech sector grew 1.5%.

Swedish mining company Boliden fell 6.8% as its third quarter operating profit fell below market expectations. Remy Cointreau rose 1.8 percent after saying it grew increasingly confident about its full-year outlook after second-quarter sales beat expectations.

New York

Seven of the S&P 500’s top 11 sector indices were even higher in the early afternoon, while the communications services sector fell more than 2% due to the collapse of the social media giants.

Facebook Inc fell 5.7% and Twitter lost 4.4% after Snap said Apple’s privacy changes on iOS devices were hurting the company’s ability to target and measure its digital advertising. Break fell 25.3% on the news and questioned next week’s quarterly reports from Facebook and Twitter, social media companies that rely heavily on ad revenue.

American Express jumped 4.9%, the biggest boost to the Dow Jones Industrial Average as it topped earnings estimates for the fourth consecutive quarter.

Intelligence Society fell 11.2 percent as it missed third-quarter sales expectations, while its chief executive pointed out that chip shortages were holding back sales of its flagship processors. – Additional reports: Reuters


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Elaine R. Knight