Euro hits two-year low against dollar
EUROPEAN SHARES inched up yesterday after Spain secured its first bailout payment for its banks. European governments agreed to lend €30 billion to Spain by the end of July, with the aim of eventually using the euro zone bailout fund to recapitalise banks directly, instead of burdening the Spanish government with the debts.
The euro, however, plumbed a two-year low against the dollar after the meeting of euro zone finance ministers failed to assuage concerns about the region’s turmoil.
The Iseq rose 0.46 per cent to close at 3,189.19.
ON PAR with the markets in Europe, the Iseq index of Irish shares closed up yesterday.
There were gains for clinical trials group Icon, up 13.14 per cent to €19.80, and Donegal Creameries, which advanced 5.88 per cent to €3.60. It was a good day for the airlines with Aer Lingus rising to €1.07 and Ryanair advancing to €4.09. Ryanair yesterday announced it would be opening its 51st base and first Dutch base in Maastricht in December.
It was also a positive day’s trading for exploration groups, with Petroceltic surging 11.76 per cent, Ormonde Mining shares advancing 7.95 per cent and Kenmare Resources rising 2.33 per cent.
Elsewhere, Permanent TSB, AIB and Bank of Ireland performed well, increasing 4.35 per cent, 1.75 per cent and 1.08 per cent respectively. Material group Kingspan fell 3.23 per cent to €6.45, while housebuilder Abbey dropped 5.65 per cent to €5.85 after a shareholder update.
BRITISH STOCKS advanced, reversing two days of losses, as manufacturing unexpectedly rose in May and policymakers agreed to disburse the first instalment of loans to Spanish banks.
Afren gained 9.1 per cent after the Daily Mail reported Exxon Mobil and Eni may bid for the company.
Barclays added 2.2 per cent after chairman Marcus Agius said the bank’s former CEO Bob Diamond would forgo bonuses valued at as much as £20 million (€25 million).
Advertising giant WPP gained 1.6 per cent after JPMorgan and Chase upgraded the stock to overweight, the equivalent of buy, from neutral. Marks Spencer advanced 2.1 per cent to 327.8 pence after an agm at which Britain’s largest clothing retailer said its head of general merchandise, Kate Bostock, would step down after reporting the biggest decline in non-food revenue since 2008.
The FTSE 100 Index rose 0.7 per cent to 5,664.07 at the close of trading in London even after China’s June imports missed estimates.
EUROPEAN SHARES rose for the first time in a week as manufacturing in Italy unexpectedly gained and euro zone finance ministers agreed on steps to support Spanish banks.
ASML Holding rallied the most since 2008 as Intel agreed to invest as much as $4.1 billion (€3.32 billion) in the maker of semiconductor equipment.
Ipsen plunged 11 per cent to €17.70 after US regulators put two of its clinical trials on hold.
German stocks rose after European governments pledged to accelerate loans for Spanish banks, and amid optimism that a court won’t delay Germany’s approval of the permanent bailout fund and fiscal treaty.
ThyssenKrupp gained 4 per cent after Macquarie Group raised its recommendation on the shares. HeidelbergCement added 2.1 per cent. Volkswagen rose 1.8 per cent. The DAX Index advanced 0.8 per cent to 6,438.33 at the close in Frankfurt. The Stoxx Europe 600 Index climbed 0.8 per cent to 255.6 at the close of trading. France’s CAC 40 added 0.6 per cent.
MOST US stocks fell, giving the Standard Poor’s 500 Index its longest decline since May, as concern about technology earnings overshadowed optimism with European officials’ steps to protect Spanish banks.
Advanced Micro Devices, the second-biggest maker of processors for personal computers, tumbled 10 per cent after reporting an unexpected decline in sales. Demand for its products is being hurt by slower growth in China and a worsening economic climate in Europe.
The chipmaker is also suffering as consumers shun PCs in favour of tablets, which rely on semiconductors made by other companies.
Applied Materials slumped 1.4 per cent after cutting its forecasts.
Alcoa, which reported earnings that beat estimates, tumbled 3.4 per cent as commodities fell amid a stronger dollar.
Earnings and revenue at the largest US aluminium producer beat analysts’ estimates after an increase in orders from the auto and aerospace industries.
Alcoa had a second-quarter net loss of $2 million, or break even on a per-share basis, compared with net income of $322 million, or 28 US cent, a year earlier. – (Additional reporting: Bloomberg)