Monday 21 May 2018

Airbus share unaffected by WTO claims

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

Sean Duffy/Reuters

The World Trade Organisation has said it has found evidence that European aircraft manufacturer Airbus received $22bn ($19.5bn) in illegal state aid from the European Union, Germany, Britain, Spain and France.

Shares in the European aircraft giant were unaffected by the news, with the company's market value rising by 1.9pc in trading yesterday.

Airbus said it would appeal the judgment and the EU said it found some of the findings "unsatisfactory".

European markets performed strongly yesterday, with all the major indexes up as investors responded to the news that the Federal Reserve is to leave interest rates unchanged and indicated it would pursue a less aggressive stance when it comes to rate hikes next year and in 2018. The German Dax rose by 2.2pc, while the French CAC gained 2.3 pc.

Bank of England policymaker Kristin Forbes said she did not see a case for a further rate cut to help Britain's economy after June's vote to leave the EU, putting her at odds with the majority of her fellow rate-setters. London's FTSE index was up 1.1pc yesterday.

Dublin's ISEQ index of overall Irish shares closed at 6153.75 a rise of 59 points, or 0.97pc. A standout performance of the day was that of financial services group IFG, which gained 6.4pc.

Applegreen stocks rose by 3.2pc, while Bank of Ireland rose the same amount.

The day's laggards were insurance group FBD, which lost 3.6pc, and travel software firm Datalex, which lost 2pc.

On currency markets, the pound gained almost 1pc on the dollar, rising to $1.308, while the euro was up 0.36pc against the greenback at $1.122. On commodities exchanges, Brent crude rose 0.8pc to $47.66.

Irish Independent

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