Europe bounces back after weeks of losses
European shares rose yesterday, bouncing back after two weeks of losses and supported by gains in Germany and Greece, with the Athens market advancing on expectations of progress in tackling Greece's debt burden.
The pan-European FTSEurofirst 300 index rose 0.5pc to 1,309.10 points, although it remains down 9pc so far in 2016.
Germany's DAX rose as the International Monetary Fund (IMF) said it had become slightly more optimistic regarding the German economy. The German government last month stuck to its forecast of 1.7pc growth for this year, despite a slowdown in emerging markets, with strong domestic demand replacing exports as the main pillar of Europe's largest economy.
Data yesterday also showed a rebound in German industrial orders. "The indices appear to be rising on the continued goodwill from a 10 month-high in German factory orders figure, and the increased hopes of avoiding a Greek calamity over the summer," said Spreadex analyst Connor Campbell. Greece's stock market rose 0.7pc, as Eurozone officials turned their attention to tackling Greece's huge debt repayments, with a view to a deal on May 24.
In Ireland, the ISEQ Overall Index climbed 1pc, or 60.32 points, to close at 6,099.22.
Shares in Bank of Ireland continued their decline, falling 2.5pc to 23 cent. State-owned AIB cut its variable interest mortgage rate by 0.25pc. Hotel group Dalata saw its shares rise 3.4pc to €4.50, while CRH added 1.8pc to €25.32. Insulation maker Kingspan gained 2.7pc to €23.28.
The UK's FTSE-100 dipped 0.18pc, while Germany's DAX gained 1.1pc. France's CAC-40 was 0.5pc higher. Mining and steel stocks slumped following disappointing data from China, a major metal consumer, with Anglo American and ArcelorMittal falling 13.8pc and 12.1pc respectively.