European markets stable; London lifted by results, oil

LONDON, May 17, 2016 (AFP) – Europe’s main stock markets steadied Tuesday but London was boosted by a raft of positive company results and oil price gains.

Frankfurt stocks sagged 0.1 percent and Paris flatlined, while London won 0.4 percent in value.

The British capital’s top gainer was homebuilder Taylor Wimpey, which announced enhancements to its shareholder dividend policy and lifted its financial targets.

In reaction, Taylor Wimpey’s share price surged to the top of the FTSE 100, gaining 4.9 percent to 194 pence.

Vodafone shares rallied 2.35 percent to 228.90 pence after the mobile phone giant reported its first underlying earnings growth in eight years.

London’s resources-heavy FTSE 100 was also buoyed by oil prices striking recent multi-month high points.
Higher oil prices boost the energy sector because they translate into rising revenues and profits.

“Well-received corporate results and the price of oil near seven-month highs helped the FTSE 100,” noted CMC Markets analyst Jasper Lawler.

“Telecom and housing stocks were top performers on the UK benchmark after Vodafone, Taylor Wimpey and Land Securities exceeded earnings expectations.”

– Buffett boost –

Elsewhere, most Asian markets climbed Tuesday as tech firms were aided by news of Warren Buffett’s billion-dollar stake in Apple.

After last week’s sell-off, US investors provided a blistering lead Monday with all three main indexes sharply higher, pumped up by news of Buffett’s giant stake in the iPhone maker.

Apple, which has tumbled since it last month reported the first fall in sales of the popular smartphones, rallied 3.7 percent on the announcement.

And Asian suppliers to the firm followed suit, with Tokyo-listed Alps Electric, Japan Display and Taiyo Yuden enjoying strong gains. Hon Hai in Taipei added 0.4 percent.

Overall stock markets in the region were also broadly higher. Tokyo jumped more than one percent thanks to a further rally in the dollar against the yen, a day after rising 0.3 percent on reports of a possible delay in a sales tax increase.

Attention now turns to the release of Japan’s first-quarter economic growth data on Wednesday.

“Markets seem to be in a relatively sweet spot with a steadily stronger US dollar and resilient commodities prices,” said IG analyst Angus Nicholson in Melbourne.

“Many investors have been predicting a pullback in markets, but despite all the negativity markets have continued to grind higher.”

– Key figures around 1145 GMT –

London – FTSE 100: UP 0.4 percent at 6,178.30 points
Paris – CAC 40: FLAT at 4,310.80
Frankfurt – DAX 30: DOWN 0.1 percent at 9,941.40
EURO STOXX 50: FLAT at 2,950.80
Tokyo: Nikkei 225: UP 1.1 percent at 16,652.80 (close)
Shanghai – Composite: DOWN 0.3 percent at 2,843.68 (close)
Hong Kong – Hang Seng: UP 1.2 percent at 20,118.80 (close)
New York – Dow: UP 1.0 percent at 17,710.71 (close)
Euro/dollar: UP at $1.1326 from $1.1318
Dollar/yen: UP at 109.55 yen from 109.06 yen
burs-rfj/bcp/kjm
HON HAI PRECISION INDUSTRY (FOXCONN) (isin = TW0002317005)
APPLE INC. (isin = US0378331005)
VODAFONE GROUP (isin = GB00B16GWD56)
TAYLOR WIMPEY (isin = GB0008782301)
LAND SECURITIES GROUP (isin = GB0031809436)
JAPAN DISPLAY (isin = JP3389660006)
TAIYO YUDEN (isin = JP3452000007)