European bourses rise on thin trading
Published 03/05/2016 | 02:30
European shares climbed yesterday after sharp declines last Friday, with German shares outperforming the broader market after a positive manufacturing survey report.
However, Italian banks fell as traders said new measures the government approved late on Friday to speed up recovery of unpaid loans would fail to have a big impact in the short term.
Trading volumes were thin as the UK market and other bourses in Europe - including Ireland's ISEQ - were closed for a public holiday.
The Eurozone's blue-chip Euro STOXX 50 index was up 0.4pc.
Germany's DAX rose 0.9pc after data showed factory activity in Europe's biggest economy rose to a three-month high in April, buoyed by rising demand at home and abroad.
"German equities are reacting positively after the factory activity data. It's a pleasant surprise, but I still think that we are not out of the woods yet," said Koen De Leus, senior economist at KBC in Brussels.
"We don't see a big acceleration in German growth trends because an appreciation in the euro against the dollar and a recent recovery in oil prices will continue to be major headwinds."
Autos were among the biggest gainers with Fiat Chrysler leading the way before its sport car unit Ferrari released its earnings, while Volkswagen and BMW both rose over 1pc.
Milan's blue chip FTSE MIB index fell 0.4pc, with banks UniCredit, Monte dei Paschi and Banco Popolare all down between 3.3pc and 5.8pc.
The Italian government passed a decree to speed up the recovery of unpaid loans in a bid to help banks tackle a bad loan pile and restore market confidence in the battered sector.