Utilities rebound aids European shares
European shares edged up on Tuesday helped by a surge in crude oil prices and a rebound in utilities, while telecoms equipment maker Nokia slumped on a disappointing earnings outlook update.
The STOXX 600 rose 0.3pc at the end of a choppy session. The pan-European index remains down 7pc so far in 2016.
Hopes of huge fiscal stimulus in the United States under Donald Trump's administration have fuelled a rally in bond yields and rate hike expectations, prompting investors to favour financials over dividend-paying sectors such as utilities or real estate.
Rising yields have made dividend paying sectors relatively less attractive, but financial companies have benefited because that eases pressure on their margins. The pause in the bond sell-off prompted profit taking among financial stocks, with the bank sector index .SX7P down 0.1pc.
Ireland's ISEQ Overall Index failed to emulate its rising European peers yesterday, dipping 0.3pc to 6,259.19.
It was dragged lower as investors sold shares in Bank of Ireland, capitalising on gains made in the previous two sessions. Its shares fell 2.6pc to 22.5 cent.
Ryanair rose 1.5pc to €14.32, as shares in rival EasyJet also climbed despite its full-year profits falling.
The ISEQ's world-beating equity rally last week helped push the ISEQ Overall Index past a technical level that signals the gains may have come too fast to hold, according to Bloomberg.
The UK's FTSE-100 closed 0.5pc higher. Germany's DAX was up 0.4pc, and France's CAC-40 was 0.6pc higher.
British American Tobacco was up 0.4pc after sources said US rival Reynolds American is seeking a higher price from the British cigarette maker after rejecting its $47bn (€44bn) takeover offer.