European stock rally pauses; Ryanair jumps

lunes 3 de noviembre de 2014 05:18 GYT

* FTSEurofirst 300 up 0.1 pct, Euro STOXX 50 down 0.1 pct

* Airline stocks rise as Ryanair lifts outlook

* Half way into Europe's earning season, profits up 8.9 pct

By Blaise Robinson

PARIS, Nov 3 (Reuters) - European stocks were steady in morning trade on Monday, taking a breather after last week's sharp gains, while Ryanair soared after raising its profit outlook.

Shares in the low-cost airline climbed 8.8 percent after it lifted its annual profit forecast almost 20 percent on a surge in winter bookings and said it would slash fares by up to 10 percent in the new year to steal more market share from struggling higher-cost rivals.

The upbeat outlook boosted the shares of rivals, with easyJet up 2.7 percent, Air France-KLM up 2.8 percent, and IAG up 1.3 percent.

Shares in Publicis fell as much as 5.6 percent after the world's third-largest advertising agency unveiled an all-cash friendly takeover offer for U.S. digital ad specialist Sapient for $3.7 billion.

"The price looks expensive, with a premium of 44 percent. Publicis's 5-10 percent cash-back policy to investors will potentially be put on hold," a Paris-based trader said.   Continuación...