Saturday 1 October 2016

Markets surge on Greece bailout deal

John Mulligan and Bloomberg

Published 14/07/2015 | 02:30

Greece's Prime Minister Alexis Tsipras (C) and Greek Finance Minister Euclid Tsakalotos (L) leave a euro zone leaders summit in Brussels. Photo: Reuters
Greece's Prime Minister Alexis Tsipras (C) and Greek Finance Minister Euclid Tsakalotos (L) leave a euro zone leaders summit in Brussels. Photo: Reuters

Stockmarkets rose yesterday after European leaders managed to ink a deal with Greece that will see the Balkan state capitulate on asset sales and austerity in a fresh €86bn bailout to save the stricken country.

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Ireland's ISEQ Overall Index was among those that benefited, gaining 1.64pc, or 103.10 points, to end the session at 6,381.75.

European stocks extended their biggest rally since 2011, with benchmark gauges of Portugal and Italy surging more than 10pc in four days.

The Stoxx Europe 600 Index rose 2pc to 396.46 at the close of trading in London, taking its four-day increase to 6.4pc.

"We got an agreement and it's going to help sentiment enormously and we'll be back to looking at the economic position and the earnings of individual companies," said Patrick Spencer, equities vice chairman at Robert W Baird & Co in London.

"European markets will continue to recover now that we have this uncertainty behind us."

Movers in Ireland included CRH, which added 2.6pc, or 66 cent, to finish at €26.30. Ryanair gained 1.6pc, or 20 cent, to close the day at €12.61, back towards its 52-week high of €12.68.

Bank of Ireland was almost 1.1pc higher at 37.5 cent, while Paddy Power surged 4.4pc, or €3.37 to €80.29. It had traded as high as €80.55.

The FTSE-100 gained just under 1pc. Germany's DAX was 1.4pc higher and France's CAC-40 added 1.9pc.

The Athens General Index rose just over 2pc.

In the UK, British Airways' owner IAG, which is on track to buy Aer Lingus, gained 3.4pc to close to £5.49. Tesco rose 2.3pc to £2.12, while Marks & Spencer added 1.7pc to £5.47.

Irish Independent

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