Monday 16 July 2018

Airbus soars 4.8pc on Bombardier wings

European shares dipped yesterday, falling from a four-month peak as weakness among commodities stocks outweighed gains spurred by results from companies, including food group Danone and education firm Pearson. (Getty Images)
European shares dipped yesterday, falling from a four-month peak as weakness among commodities stocks outweighed gains spurred by results from companies, including food group Danone and education firm Pearson. (Getty Images)

Reuters

European shares dipped yesterday, falling from a four-month peak as weakness among commodities stocks outweighed gains spurred by results from companies, including food group Danone and education firm Pearson.

Credit Suisse was also in the spotlight, with its shares rising 1.2pc on reports that activist investor RBR Capital has launched a campaign to break up the Swiss investment bank after building up a small stake.

The pan-European STOXX 600 index ended the session 0.3p lower, weighed down by a dip in basic resources and energy shares, while eurozone blue chips were flat.

The UK's FTSE ended 0.1pc lower following comments by Bank of England policymakers, which were taken as dovish by market participants.

Meanwhile, Spain's IBEX regained some ground with a 0.4pc gain.

In Dublin, the Iseq index was down 0.42pc at 6784.84.

Elsewhere, Airbus rose 4.8pc after agreeing to buy a majority stake in Bombardier's CSeries jetliner programme.

The deal would come at no cost for Airbus.

"Airbus' move is sensible and the downside is limited," analysts at UBS said in a note. (

US stocks turned mixed on Tuesday, with traders unimpressed by some bank earnings reports, while the US Treasury yield curve flattened and the dollar rose to a one-week high on increased inflation expectations.

Goldman Sachs and rival Morgan Stanley topped analyst expectations with their third-quarter earnings.

Shares of Goldman fell because earnings were fuelled by a volatile unit. which has sharp revenue swings, analysts said.

Irish Independent

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