LONDON, July 17, (Agencies): World stock markets gave mixed performances Friday, with European exchanges closing in positive territory for the fifth straight day while Wall Street wobbled in early trade. Asian stocks rallied for a fourth day, largely ignoring news of the deadly bombings at luxury hotels in Jakarta. Bolstered by better-than-expected financial results from government-aided US banking giants Citigroup and Bank of America, European exchanges powered ahead. The London FTSE 100 index gained 0.62 percent to reach 4,388,75 points while in Paris the CAC 40 rose 0.58 percent to 3,218.46. The Frankfurt Dax added 0.43 percent to end the week at 4,978.40. Elsewhere there were gains of 1.0 percent on the Swiss Market Index, 0.26 percent in Milan and 1.11 percent in Amsterdam. The Brussels exchange fell 0.07 percent. US Mixed news from earnings reports has investors taking a pause after pushing stocks higher for four straight days. Stocks were mostly lower after Bank of America Corp. and Citigroup Inc. became the latest banks to report big second-quarter profits but also weakness in their loan portfolios. General Electric Co. beat earnings forecasts, but its revenue came up short. Investors have been keenly focused on earnings reports this week, hoping to find more concrete signs of life in the economy and validation that a huge rally in stocks this spring was justified. So far, the results have been varied. Strong earnings from four of the largest US banks have been encouraging, but there are still signs that the recession’s grip hasn’t eased as much as hoped such as higher loan defaults. BofA, which has struggled more than some of its peers from loan losses, beat Wall Street’s estimates just as Goldman Sachs Group Inc. and JPMorgan Chase & Co did earlier this week. However its profit was down from a year earlier as losses from delinquent loans continued to climb. Citigroup, another troubled bank, surprised Wall Street with a $3 billion profit instead of the big loss analysts had expected, but results were boosted by the sale of a majority stake in its Smith Barney brokerage. GE’s earnings fell 49 percent on losses at its financial unit and weakness in industrial businesses. The profits topped forecasts, but revenue came in $3 billion below estimates. Those reports followed mixed results from tech giants Google Inc and IBM Corp late Thursday. About four stocks fell for every three that rose on the New York Stock Exchange where volume came to 633 million shares compared with 434.2 million shares at the same time a day earlier. Investors also got an upbeat reading on the housing market Friday. Construction of new homes and apartments jumped 3.6 percent in June to the highest level in seven months, beating economists’ estimates. It was the second straight increase after a record low in April. Building permits climbed 8.7 percent, also beating forecasts. IBM reported revenue below expectations, but its profit continued to improve and the company raised its full-year forecast. Shares rose $3.46, or 3.1 percent, to $114.10. Financial stocks were mixed. Bank of America fell 31 cents, or 2.4 percent, to $12.86, while Citigroup rose 3 cents to $3.06. Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.63 percent from 3.58 percent late Thursday. In other trading, the Russell 2000 index of smaller companies fell 4.22, or 0.8 percent, to 517.80. Europe European stock markets trimmed gains Friday as investors booked profits accumulated this week despite another batch of upbeat earnings from the US, most notably from Bank of America Corp and Citigroup Inc. In Europe, the FTSE 100 index of leading British shares was up 26.34 points, or 0.6 percent, at 4,388.18 while France’s CAC-40 was up 7.97 points, or 0.3 percent, at 3,207.65. Germany’s DAX was 31.30 points, or 0.6 percent, higher at 4,988.49 having earlier breached the 5,000 level for the first time in a month. Europe’s markets had been around 1 percent higher earlier in the session but expected profit-taking on Wall Street saw the gains reduced. Dow futures were down 23 points, or 0.3 percent, at 8,646 while the broader Standard & Poor’s 500 futures fell 3.3 points, or 0.4 percent, to 932.40. Analysts said profit-taking was hardly a surprise after the big increases posted this week — the Dow Jones industrial average has risen around 8 percent just this week, its best performance for months. However, they also noted that further upbeat earnings news may well keep this week’s rally going into the weekend. “A correction looks a fair assumption but with the new improved sentiment, and likelihood that the results out this afternoon will be good, this correction may well not be today,” said Philip Gillet, a sales trader at IG Index. Overall, investor appetite for stocks continues after a string of better than expected US second-quarter corporate earnings, not least from technology bellwethers IBM Corp and Google Inc. Their strong after-hours statements reinforced hopes that the worst of the recession is over. Asia Most Asian stocks traded higher for a fourth day Friday as better-than-expected earnings in the US continued to buoy recovery hopes, but Indonesian markets were shaken by deadly bomb blasts at hotels in the country’s capital. Indonesia’s shares initially tumbled more than 2 percent after a pair of powerful explosions killed nine and wounded at least 50 people at the upscale Ritz-Carlton and Marriott hotels in Jakarta. The country’s currency, the rupiah, dropped almost 1 percent against the dollar. Most Asian markets followed Wall Street higher as investors welcomed stronger results from US technology bellwethers IBM Corp and Google Inc., as well as financial giant JPMorgan Chase & Co. This week’s corporate results have come as something of a relief to investors, who sent stocks lower earlier this month out of concern earnings would reveal the US economy in far worse shape than originally thought. “I don’t think we’re completely out of the woods yet, but the biggest parts of the economy seem to be more sound and this is going to help markets both in the US and Asia,” said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. Japan’s Nikkei 225 stock average rose 51.16 points, or 0.6 percent, to 9,395.32 and Hong Kong’s Hang Seng was up 443.79, or 2.4 percent, at 18,805.66. South Korea’s Kospi added 0.6 percent and India’s Sensex jumped 3.1 percent. Australia’s market was up 0.1 percent. In Jakarta, the main stock measure fell over 2 percent before paring its losses, trading 0.8 percent lower at 2,101.784 as the two blasts spooked investors. The rupiah slid against the dollar to trade at 10,175 compared to 10,090 earlier. The explosions were at least a temporary set back for Indonesia’s high-flying markets, currently among the world’s best performing with the main index up 54 percent. Foreign investors have poured into Indonesian equities and the rupiah of late, attracted by the country’s comparatively healthy banks, commodities sector and its relative political stability, though corruption is still rampant. President Susilo Bambang Yudhoyono’s quick re-election last week in what was considered a largely peaceful poll was seen by many investors and analysts as helpful to bringing about certain reforms and implementing economic stimulus measures. Alastair Newton, senior political analyst at Japanese financial firm Nomura International, said the market’s reaction was relatively muted and the bombings were unlikely to dampen investor sentiment long-term given Indonesia’s success at preventing attacks in recent years. “I think the markets got it right today,” said Newton, who is based in London. “The overall market has been looking positively at Indonesia and I can’t see any reason in the absence of a massive wave of sustained attacks why that would change.” Oil Oil prices are extending their rally into a third straight day, rising above $63 a barrel Friday for the first time in 10 days. Benchmark crude for August delivery jumped $1.17 to $63.19 a barrel on the New York Mercantile Exchange. In London, Brent prices climbed $1.95 to $64.70 a barrel on the ICE Futures exchange. Earlier in the week, crude futures were tugged higher by a rally on Wall Street, and they continued to rise as China reported that its economy grew faster in the second quarter. But with the country still swimming in surplus oil and consumer demand hovering around 10-year lows, analysts struggled to find a fundamental reason for an extended rally in oil. Peter Beutel at Cameron Hanover said investors were trying to justify higher prices Friday with reports that Iraq may have trouble producing oil. “A lot of it is pure nonsense,” Beutel said. “I have trouble understanding what’s going on.” The government reported Friday that new home construction rose in June to the highest level in seven months. Bank of America Corp. and Citigroup Inc. also reported big second-quarter profits. But analyst Stephen Schork said investors, especially those who have no commercial use for the oil contracts they’re buying, are simply buying oil right now on the expectation that the economy will eventually heal. Currencies The dollar rose against the euro on Friday as deadly bomb attacks in Indonesia sent risk-averse traders running for the cover of the so-called safe-haven currency, analysts said. “The terrorist attacks in Jakarta have served as a reminder of the ongoing threat to global stability that we still face,” said analyst James Hughes of spread-betting firm CMC Markets. In late London trading, the euro weakened to $1.4117 from 1.4150 reached in New York on Thursday. The European single currency also dropped to 132.04 yen before recovering to hold steady at the level of 132.87 yen reached late on Thursday. In London trading on Friday, the euro was changing hands at $1.4117 against $1.4150 late on Thursday, 132.87 yen (132.87), 0.8648 pounds (0.8607) and 1.5201 Swiss francs (1.5175). The dollar stood at 94.1 yen (93.89) and 1.0768 Swiss francs (1.0724). The pound was at 1.6322 dollars (1.6438). Gold On the London Bullion Market, the price of gold increased to 937.50 dollars an ounce from 935 dollars an ounce late on Thursday.

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