European equities rise despite record slump on Greek market
Commodities tumble hurts London market, while airlines climb on oil price retreat
Manufacturing output in Germany and the euro zone increased by more than initially estimated, appearing to suggest the crisis in Greece had not been a setback for growth. Photograph: Oli Scarff/Getty Images
European stocks made gains as improved earnings reports and a positive reception for fresh economic data outweighed the impact of record losses in Greek shares.
Equities on the ASE Index plummeted after equity trading resumed in Athens for the first time in five weeks, but there was little fallout elsewhere in Europe. In London, the FTSE 100 underperformed, however, as mining stocks fell after a weaker-than-expected manufacturing update from China.
Building materials group CRH rose 1.7 per cent to €27.37, after it confirmed to investors it had completed its purchase of assets from Lafarge and Holcim.
Ryanair continued its recent ascent, finishing up 2.8 per cent at €12.81 as oil prices fell, while insulation company Kingspan climbed 3 per cent to €23.67 and food group Kerry advanced 1.9 per cent to €70.45. Paper and packaging company Smurfit Kappa finished 0.4 per cent higher at €27.50.
Insurer FBD Holdings and drinks group C&C were among the few fallers.
Bank of Ireland, which published its first-half results on Friday, added to its 1.3 per cent climb in that session with gains of 1.8 per cent yesterday. The stock closed at 39 cent.
The blue-chip London index, which is more skewed towards energy and natural resources than many indexes in Europe, closed down 0.1 per cent, with the FTSE 350 mining index down more than 3 per cent. Mining giants Anglo American and Glencore both declined more than 3.6 per cent.
HSBC beat expectations with a 10 per cent rise in first-half profits and an agreement to sell Banco Bradesco for more than $5 billion. Its shares rose 0.3 per cent.
Rolls-Royce rose 5.9 per cent, extending gains from Friday after an announcement that ValueAct had taken a 5.4 per cent stake.
Germany’s DAX advanced 1.2 per cent and France’s CAC 0.8 per cent.
Among individual stocks, Dutch brewer Heineken was one of the major climbers, rising 5.6 per cent after its second-quarter results beat expectations. Commerzbank advanced 2.3 per cent after the German lender reported higher than expected profits.
National Bank of Greece and Piraeus Bank slumped 30 per cent, leading a record 16 per cent drop in the ASE Index.
NEW YORKTyson Foods
Chevron sank 3.4 per cent as energy companies in the Standard & Poor’s 500 Index lost 1.9 per cent, while shares of luxury handbag makers Coach and Michael Kors Holdings were under pressure after analysts warned that slumping sales will probably continue.
Apple fell 1.9 per cent, down for the ninth time in 10 days to a nearly six-month low.
Airlines rallied on a pullback in crude oil prices, with a Bloomberg gauge of US carriers rising 3.5 per cent. Delta, American Airlines and United Continental each added at least 3.2 per cent, while Southwest Airlines rose 3.6 per cent. – (Additional reporting: Bloomberg / Reuters)