Tuesday 30 May 2017

European shares extend their gains after positive bank results

Paddy Power Betfair was one of the leaders on the market. Photo: Bloomberg
Paddy Power Betfair was one of the leaders on the market. Photo: Bloomberg

Bloomberg/Colm Kelpie

European shares extended their biggest monthly gains since October, with banks leading the way amid earnings results.

By the close in Dublin yesterday, the ISEQ Overall Index was up 1.09pc, or 63.17 points, to end the trading week at 5,867.64.

The leaders on the Dublin market included Paddy Power Betfair, which increased 4.6pc to €105, while speciality baker Aryzta rose 2.7pc to €34.11.

On the other side of the board, the laggards included insrulation group Kingspan, which slipped 2.3pc to €20.56, while drinks group C&C fell 4pc to €3.60.

Elsewhere, Barclays jumped 5.5pc as fixed-income trading revenue outperformed European rivals and it said the non-core unit will weigh less on profit in 2017.

Banco Bilbao Vizcaya Argentaria rose 3.7pc after reporting quarterly earnings that beat analysts' estimates.

France's Natixis gained 7.6pc as its profit and revenue topped projections. Italy's Banca Monte dei Paschi di Siena surged 6.3pc after receiving a proposal to turn around the ailing lender.

The Stoxx Europe 600 Index climbed 0.7pc at the close of trading in London, taking its monthly rise to 3.6pc.

The gauge rebounded after getting dragged down by a decline in crude prices and lenders on Thursday.

"The main fear for 2016 was a possible recession for the second half, and there has been no evidence in that direction so far," said Guillermo Hernandez Sampere, head of trading at MPPM EK in Eppstein, Germany. "It took some time to understand that the spirit was much worse than the actual situation. A lot of companies have beaten or even increased their forecasts."

European lenders posted their best month since February 2015, rebounding 6.1pc after their worst losses since October 2008 in June.

Irish Independent

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