Wednesday 28 September 2016

European markets end higher

Published 13/04/2016 | 02:30

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

European shares rose yesterday at the end of a choppy session, helped by gains among mining companies, but Italy underperformed as its banks snapped a two-day winning streak.

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The pan-European FTSEurofirst 300 index and the Eurozone's blue-chip Euro STOXX 50 index both rose around 0.6pc.

The Italian banking index fell 3.7pc, reversing initial gains as investors questioned the effectiveness of a state-orchestrated deal to create a fund to shore up weaker lenders.

"The problem with the Italian bank fund is that it is not big enough and it risks compromising the banks that are already in a much better shape," said Francois Savary, chief investment officer at investment and consultancy firm Prime Partners.

Intesa Sanpaolo and UniCredit, the country's two biggest banks, fell 5.2pc and 4.2pc respectively, sending the Milan blue chip index down 1.6pc. The two lenders are to contribute €1bn each to the fund, according to a source cited by Reuters.

Luxury goods industry leader LVMH rose 1.5pc, reversing initial losses triggered by first-quarter sales below forecasts.

In Ireland, the ISEQ Overall Index dipped 0.38pc to 6,173.16.

Movers included Hibernia REIT, which was 1pc lower at €1.30. Ryanair also declined, falling 1pc to €13.06.

Bank of Ireland and hotel group Dalata both posted very modest gains.

The UK's FTSE-100 was 0.68pc higher, while Germany's DAX rose 0.81pc. France's CAC-40 gained 0.77pc.

The mining sector index climbed 3.2pc.

That made it the top sectoral gainer, supported by steady copper prices and encouraging economic signals coming from China.

Irish Independent

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