Sunday 22 July 2018

Oil and Ocado buoy European indices

The pan-European Stoxx 600 was more than 0.5pc higher at a more than three-month high, as shares in energy stocks and miners rose on the back of firmer commodities prices (stock picture)
The pan-European Stoxx 600 was more than 0.5pc higher at a more than three-month high, as shares in energy stocks and miners rose on the back of firmer commodities prices (stock picture)

European stocks pushed higher yesterday as commodities-related sectors rallied and shares in Ocado rocketed after the company signed a partnership deal, while Italian equities recovered some lost ground.

The pan-European Stoxx 600 was more than 0.5pc higher at a more than three-month high, as shares in energy stocks and miners rose on the back of firmer commodities prices.

Italy's benchmark FTSEMib index rose after stocks there fell more than 2pc on Wednesday when a leaked draft coalition programme indicated that the parties planned to ask the European Central Bank to forgive €250bn of Italian debt.

Shares in online supermarket Ocado surged 44pc in London - an all-time high after the company signed a deal with US retailer Kroger to use Ocado's technology for grocery deliveries in the world's biggest market.

"The short sellers were hoping Ocado wouldn't deliver on its international expansion plans. That position now looks like a badly busted flush," said Laith Khalaf, senior analyst at Hargreaves Lansdown.

Ireland's ISEQ Overall Index advanced just over 1pc to 7,081.83.

Shares in packaging giant Smurfit Kappa were almost 1pc higher at €33.98. They fell more than 5pc on Wednesday after US suitor International Paper said it would not pursue a takeover attempt of the Irish firm unless the Smurfit Kappa board supported it.

Paddy Power Betfair advanced 2.1pc to €95.90 as it continues to be buoyed by the likelihood that the US market will open to internet gambling.

The UK's FTSE-100 rose 0.70pc. Germany's DAX was up 0.91pc and France's CAC-40 rose 0.98pc.

Reuters

Irish Independent

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