Friday 20 April 2018

Stocks rise on optimism of Greek deal over bailout terms

Traders work on the floor of the New York Stock Exchange. Reuters
Traders work on the floor of the New York Stock Exchange. Reuters Newsdesk Newsdesk

European shares increased yesterday amid investor optimism that Greece can reach an agreement on bailout terms with its creditors.

By the close in Dublin, the ISEQ Overall Index was up 1.04pc or 57.86 points to end the trading day at 5,639.69.

The leaders on the Dublin market included Dublin-based Mainstay Medical, which closed up 7.9pc to €15, while Ryanair rose 2.9pc to €9.86 and packaging giant Smurfit Kappa increased 2pc to €22.50.

On the other side of the board, the laggards included fruit company Fyffes, which slipped 0.5pc to €1.12 and food ingredients company Kerry Group, which dropped 1pc to €62.88.

Elsewhere, the Stoxx Europe 600 Index added 0.6pc at the close of trading, after earlier rising as much as 0.9pc.

Greek Finance Minister Yanis Varoufakis faces his Eurozone counterparts today at an emergency meeting in Brussels.

He said his government will neither tear up the existing bailout deal, nor allow the budget to be derailed, while Greece will implement about 70pc of reforms included in the agreement.

"The short-term movements are all about Greece and Germany, which seem like two cars running at high speed against each other," Thomas Haerter, chief strategist at Swisscanto Asset Management in Zurich, said.

"There will be more noise before a deal is reached, which will only happen at the last minute. Markets have been in a risk-seeking mode so they will need to consolidate in the following weeks or months."

The European Commission denied an earlier report from Market News that it will table a compromise proposal at today's gathering.

Among stocks moving on corporate news, UBS Group lost 2.6pc.

The bank said the increased value of the franc and negative interest rates in Switzerland and the euro area may hurt profitability.

Hugo Boss fell 2.4pc after buyout firm Permira Holdings further reduced its stake in the German clothier.

(Additional reporting Bloomberg)

Irish Independent

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