Markets rise on US growth hopes

AS A second, €130 billion financing package for Greece was formally approved yesterday, markets across Europe continued to rise, with the UK the notable exception.

DUBLIN

THE IRISH market enjoyed another good day yesterday, finishing up by about 0.5 per cent, ahead of many indices around Europe.

As one broker noted, there was “good buying interest” in Bank of Ireland, which finished up by almost 1 per cent at €0.13.

CRH was also strong on the day, advancing by 16 cent, or 1 per cent, to close up at €16.37 on resasonable volumes.

Following on from reports about talks with US airline Jet Blue, Aer Lingus was again strong on the day. It added 1 per cent, or 1 cent, to climb to €0.94, while Ryanair added three cent, or 0.6 per cent, to finish up at €4.29.

Tullow Oil came out with full-year results which were “bang on expectation” according to one Dublin broker.

On the back of these, it gained 44 cent or 2.5 per cent to finish the day up at €17.86.

Kenmare was also in positive territory yesterday, adding 3 cent or 4.4 per cent to advance to €0.64, while Dragon Oil gained 44 cent, or 6.1 per cent to close up at €7.74.

A number of stocks were ex-dividend yesterday, but performed well nonetheless according to brokers.

Both Paddy Power and FBD finished the day largely flat, at €46.55 and €9.00 respectively, but Grafton Group fell back, down by 4 cent, or 1.2 per cent, to €3.33.

LONDON

UK STOCKS ended a five-day rally yesterday, as the FTSE 100 gave up 0.2 per cent to drop back to 5,945.43, under-performing most European markets.

Vodafone fell by 2.4 per cent, the most in two months, as Exane BNP Paribas downgraded the world’s biggest mobile-phone operator.

Rio Tinto Group and BHP Billiton retreated with metals prices.

“A weaker mining sector was able to drag the FTSE lower, as raw-material stocks also felt the impact of the almighty dollar,” said Will Hedden, a sales trader at IG Index in London.

Barclays rose 3.9 per cent to 248.8p as most US banks passed a Fed stress test, and Royal Bank of Scotland Group advanced by 3.1 per cent to 26.56p.

EUROPE

MARKETS ACROSS Europe rose yesterday as the Federal Reserve raised its economic assessment of the world’s largest economy.

In Paris, the CAC 40 was up by 0.4 per cent, while in Frankfurt, the DAX was up by 1.2 per cent.

The Stoxx Europe 600 Index climbed 0.3 per cent to 270.27 at the close.

The index has gained 11 per cent so far this year amid optimism that the euro area will contain its sovereign-debt crisis and better than expected US economic data.

“The US continues to deliver rather good economic data and the situation in Greece has calmed down for the time being,” said Peter Braendle of Swisscanto Asset Management in Zurich.

EON AG, Germany’s biggest utility, gained 7 per cent after it reported 2011 earnings that topped analysts’ estimates.

Credit Suisse Group and Legal and General Group advanced as a gauge of banks and insurers rallied. Arkema, the French maker of plastics additives, fell by 5 per cent as a shareholder is selling as much as € 450 million of the companys stock.

NEW YORK

US BANKS continued to rebound yesterday. By lunch-time yesterday, the SP 500 had fallen by less than 0.1 per cent to 1,395.82, while the Dow Jones Industrial Average was up by 21 points, or 0.2 per cent, to 13,198.68.

The index rose for a sixth day, the longest advance in 13 months.

Technology shares, which comprise 20 per cent of the SP 500, had the biggest gain among 10 groups yesterday, with Apple climbing by 4.1 per cent to $591.19, rising for a sixth day after Morgan Stanley raised its share price estimate to $720.

Financials were also on the up. The KBW Bank Index climbed by 1.7 per cent, reversing earlier losses, as investors weighed the Federal Reserve’s stress tests.

Bank of America and Zions Bancorporation advanced by at least 4.5 per cent, while Citigroup and MetLife retreated by more than 2.9 per cent.

“It’s not like we’re getting super bullish, but the break-out in financials is game-changing,” said Michael Riesner, an analyst with UBS in Zurich.

ASIA

ASIAN STOCKS rose for a second day, with a regional benchmark index set for its highest close in two weeks, after US retail sales jumped and the Federal Reserve raised its assessment of the world’s biggest economy, boosting the earnings outlook for Asian exporters. – Additional reporting: Reuters