Saturday 17 August 2019

German parliament backs Irish loan plan

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)


Germany's federal parliament yesterday voted through its support for an Irish plan to save around €150m by paying off remaining IMF loans early - a deal that requires EU support under the terms of the bailout. New issues in the bond markets can be used to refinance the debt.

Elsewhere, European shares quickly recovered from a weaker open on Tuesday as continued faith in the underlying strength of the European economy and a synchronised global expansion overcame negative trading updates, notably in Britain.

The STOXX 600 benchmark ended up 0.4pc with most European markets in positive territory.

Germany's DAX rose 0.8pc after Chancellor Angela Merkel said she would prefer a new election to minority rule after failing in talks to form a three-way coalition.

"Financial markets did not really react too much", said Paul Donovan, chief economist at UBS Wealth Management, adding that a snap election was not the most likely option because it would be a lengthy process.

German shares performed well. In London, Kingfisher, Europe's largest home improvement retailer, fell as much as 1.8pc after reporting a small fall in underlying sales, citing weak performance in France.

The stock reversed losses to end up more than 1pc.

EasyJet was a top performer with a 5.1pc gain after it said it was benefiting from the collapse of rivals and from problems at Ryanair.

Oil rose, supported by expectations of an extension next week to output cuts by Opec, but prices remained under pressure from signs of higher output in the United States.

Irish Independent

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