European stock markets move higher
Published 20/09/2016 | 02:30
European shares edged higher yesterday in a modest rebound after two straight weeks of losses, led by financials and commodity stocks.
The pan-European STOXX 600 index, which had fallen to a six-week low on Friday, ended up 1pc. The STOXX 600 remains down by 7pc in 2016.
A rise in financial stocks, which had slumped on Friday following a threatened $14bn fine on Deutsche Bank from US authorities, added the most points to European stock markets.
Shares in banks HSBC, Intesa Sanpaolo and Santander rose between 1pc and 2.5pc.
But Deutsche Bank fell 2.4pc, extending losses following an 8.5pc slump in the stock last Friday. Analysts at US bank Citigroup said that, while battered bank stocks represented a tempting investment opportunity, buying into the sector would nevertheless represent the "world's biggest contrarian trade".
"History says 'Buy' but our key message is do not 'Underweight' the sector," said Citi analysts, led by Jonathan Stubbs, in a note to clients.
In Ireland, the ISEQ Overall Index didn't manage to capture the rising sentiment, edging 0.25pc lower to 6,096.08.
It was dragged lower by shares including those in Bank of Ireland, which fell just over 1pc to close at under 19 cent.
Shares in Ryanair also fell, shedding 1.5pc to €13.04. They had been as much as 1.8pc lower earlier. Stocks faring better included Smurfit Kappa, which rose 1pc. Green REIT was up 1.4pc.
The UK's FTSE-100 rose 1.5pc. Germany's DAX was just under 1pc higher, and France's CAC-40 closed up 1.4pc.
In the UK, miners Anglo American, BHP Billiton, Glencore and Rio Tinto were all top gainers.