Saturday 1 October 2016

European stocks rise amid Greek hopes

Bloomberg and Colm Kelpie

Published 23/06/2015 | 02:30

The purchase came as a shock as rumours have abounded over the last 12 months that Marfrig would float Moy Park on the London Stock Exchange. Photo: Reuters
The purchase came as a shock as rumours have abounded over the last 12 months that Marfrig would float Moy Park on the London Stock Exchange. Photo: Reuters

European stocks rose yesterday, with equities from France to Germany and Spain rallying the most since 2012, on optimism that a deal between Greece and its creditors is close.

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Greek banks jumped the most since May 2013.

The Stoxx Europe 600 Index rallied 2.3pc to 394.25 at the close of trading in London, with all its industry groups up.

Greece's ASE Index surged 9pc, and a gauge tracking its banks soared 21pc as Alpha Bank, National Bank of Greece and Piraeus Bank all jumped.

Benchmark indexes of Germany, France and Spain climbed more than 3.8pc.

By the close in Dublin, the ISEQ Index was up 1pc or 62,77 points to end the trading session at 6,333.67.

The leaders on the Dublin market included insulation group Kingspan, which rose 2pc to €21.35, while Ryanair jumped 3.2pc to €12.23.

On the other side of the board, the laggards included speciality baker Aryzta, which fell 1.6pc, while drinks group C&C dropped 0.7pc to €3.60.

European policy makers expressed confidence that an agreement with Greece was within reach after Prime Minister Alexis Tsipras's government submitted a last-minute set of proposals.

"It looks like Greece is coming back from the brink and closing the gap," said Daniel Murray, head of research at EFG Asset Management in London.

"It just feels like we are reaching the final leg of this crisis. Once that's out of the way, investors can focus on all the good things that are happening in Europe, such as earnings growth, corporate confidence increasing and M&A activity picking up."

Deteriorating talks between Greece and its creditors dragged the Stoxx 600 down 7.5pc from its record in April through a four-month low on June 15.

Irish Independent

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