European stocks edge lower

MANY MARKETS across Europe declined yesterday as latest data showed the US economy grew at a slower pace in the fourth quarter than economists had predicted.

The euro gained for a fifth day against the dollar, the longest streak in three months, after European Union economic and monetary affairs Commissioner Olli Rehn said Greece was “close” to reaching agreement with its creditors.

DUBLIN

TRADERS SAID it was a busy day of trading, albeit with most stocks closing lower. This mirrored sentiment across Europe as weaker than expected US economic data impacted on sentiment.

Ryanair was up 0.6 per cent at €4.15 to maintain its momentum during the week. It benefited from good results from Easy Jet earlier in the week and expectations that its Q3 results published on Monday will be strong.

“The expectation is that they’ll publish a reasonable set of numbers and beat expectations,” one trader said.

Dragon Oil and IFG both gained about 3.5 per cent yesterday, to lead the way among gainers. Earlier this week it emerged investment group One51 had sold its 4.4 per cent stake in IFG.

Aminex was the biggest faller, closing down 7.3 per cent. It was followed by Irish Continental Group, down 2.3 per cent at €14.65 and Elan, which finished 2 per cent lower at €10.40.

CRH closed down 1.7 per cent at €15.31.

LONDON

UK STOCKS fell from the highest level since July as the US economy expanded less than forecast and private bondholders pressed on in talks with the Greek government for a debt-swap agreement.

BP dropped 2.6 per cent after a US court ruled that the oil company cannot recover part of the clean-up costs of the 2010 Gulf of Mexico spill from Transocean.

InterContinental Hotels Group lost 2.7 per cent after UBS advised selling the shares.

The FTSE 100 fell 61.75, or 1.1 per cent, to 5,733.45 at the close in London, paring gains this week to less than 0.1 per cent. The gauge has still risen 2.9 per cent this year amid signs the US economy is recovering and after the European Central Bank moved to ease bank lending through its long-term refinancing operation.

The FTSE All-Share Index lost 1 per cent.

African Barrick Gold advanced 5.3 per cent to 515.5 pence, its highest price in seven weeks, after it reported a fourfold increase in a deposit in Tanzania.

EUROPE

EUROPEAN STOCKS dropped from a five-month high as a report showed that the US economy grew at a slower pace in the fourth quarter than economists had predicted.

BNP Paribas fell 3.3 per cent, making the biggest contribution to the decline in a gauge of European banks, after JPMorgan Chase recommended selling the shares.

The Stoxx Europe 600 Index tumbled 1 per cent to 255.4 at the close of trading, the biggest drop since December 14th.

The benchmark index slipped 0.2 per cent this week, snapping a five-week rally, as Greece’s government continued to discuss a debt swap with its private bondholders.

The gauge has still advanced 4.4 per cent in 2012, entering a bull market yesterday for the second time in less than a year.

The Stoxx 600 rose 1.1 per cent yesterday, extending the gauge’s rally from its September 22nd low to 20 per cent. When an index gains 20 per cent from its most recent low, analysts say it has entered a bull market.

European equities have climbed since September amid reports that indicated the US economy is recovering and speculation that the euro area will contain its sovereign-debt crisis.

US

SOLAR SHARES gained in early trading as chief executive officers from Suntech Power Holdings and Trina Solar said China may double its installations of solar panels this year, absorbing excess production that depressed prices and margins in 2011.

Suntech added 3.1 per cent to $3.34. Trina rose 4 per cent to $8.40. First Solar climbed 5.8 per cent to $43.32. Cepheid surged 19 per cent to $41.04 after jumping 22 per cent earlier.

The maker of a rapid test for drug-resistant staph infections reported fourth-quarter revenue of $80.1 million, surpassing the average analyst estimate of $73.9 million.

Chevron fell the most in the Dow Jones Industrial Average, sinking 3.1 per cent to $103.24. The second-largest US energy company reported its biggest decline in quarterly earnings in two years after refining losses undercut gains from record fourth-quarter crude prices. Cirrus Logic slid 6.7 per cent to $20.60 and declined 7 per cent earlier, the most intraday since November 9th.

The supplier of parts for Apple’s iPhone and iPad forecast fourth- quarter revenue will be at least $108 million, exceeding the average analyst estimate of $103.8 million. – (Additional reporting: Bloomberg)