European shares slip from three-week high

European shares slipped from a three-week high yesterday after the Bank of England surprised investors by keeping interest rates on hold.

The pan-European STOXX Europe 600 and the FTSEurofirst 300 indexes were both up 0.8 and 0.9 per cent respectively at the close, having climbed earlier in the session to their highest since the Brexit vote on June 23rd. European shares eased after the Bank of England caught investors off guard by keeping rates unchanged, while the UK's FTSE 100 index closed 0.2 per cent lower as a surge in sterling made dollar-earning blue-chips less attractive.

DUBLIN

The Iseq outperformed some of its European peers, rising 1 per cent to 5,844.94.

Bank of Ireland

, which has been buffeted by Brexit woes, closed the day up 2 per cent at 18.9 cents, despite warning about its increased pension deficit.

Shares in Providence Resources rose 8 per cent after shareholders backed the company's $70 million rescue fund raising.

After a positive move in the previous session, construction group CRH fell marginally to €26.53.

Food group Glanbia was also down 1 per cent at €17.51 while rival Kerry rose 1 per cent to €81.28. Ryanair rose 3 per cent rise to €11.68.

Drinks group C&C was down again, shedding 1. 2 per cent to close at €3.53.

LONDON

The pound jumped to a two-week high while London’s top flight index edged down as markets reacted to the Bank of England’s decision to keep interest rates on hold. The announcement caused the FTSE 100 Index to fall back from a fresh 11-month high during the session to finish 15.9 points down at 6,654.47.

It was widely predicted that the bank would slash interest rates following governor Mark Carney’s remarks signalling monetary easing in the wake of Britain’s decision to quit the EU.

Bank and mining stocks were among the biggest risers, with Anglo American up 31.2p to 843.4p and Royal Bank of Scotland 4.4p higher at 182.2p.

However, retailer Halfords saw its share price slump as its bike sales recovery skidded to a halt after it was hit by wet weather and the timing of Easter.

EUROPE

Germany’s Dax and the Cac 40 in

France

were up 1.3 per cent.

UniCredit

, the Italian lender that’s selling assets to boost capital, added 6.6 per cent after

Citigroup

advised investors to buy the stock.

SEB climbed 1.7 per cent after the lender reported second-quarter profit that rose 15 per cent, beating analyst estimates.

Insurance firm Storebrand rallied 2.9 per cent after saying second-quarter premium income and net income both rose.

Germany's Rheinmetall rose after Commerzbank AG upgraded the company on improved prospects for its defence unit.

NEW YORK

The S&P 500 and the Dow reached new highs as

JPMorgan’s

strong results set an upbeat mood for earnings and spurred a rally in financial stocks.

JPMorgan, the biggest US bank by assets, reported a quarterly revenue rise that beat estimates by a hefty margin. The bank's shares rose 2.6 per cent.

Wall Street’s record-breaking rally extended to the fourth day this week and experts said the market needed to see earnings growth to sustain the rally.

KFC owner Yum Brands rose 3.4 per cent to $88.66 after its key China business showed signs of strength. Delta's 2.8 per cent gain after its higher-than-expected quarterly profit also sent other airline stock higher. Citigroup and Wells Fargo are scheduled to report results today.

As the earnings season gathers steam, investors will parse reports to justify stock valuations.

S&P 500 earnings are expected to have fallen 5 per cent in the second quarter, mirroring the first. – (Additional reporting: Reuters/Bloomerg)