European shares rise on hopes over Italy’s budget

In Dublin Paddy Power Betfair falls as rows over regulation and taxes concern investors

European shares rose as hopes grew that Italy would resolve its budget row with Brussels while investors speculated on a new round of deal making in telecoms.


The Iseq Overall index in Dublin fell marginally to 5,926.42. AIB climbed 1.65 per cent to €3.82 as banks around Europe benefitted from signs that the EU and Italian government were likely to settle their row over the country's budget. Bank of Ireland added 0.2 per cent to €5.84. Permanent TSB tumbled almost 3 per cent to €1.704.

Ryanair shed 1.6 per cent to €12.235 as oil prices rebounded, paring back gains made by the low-cost airline late last week.

Bookmaker Paddy Power Betfair fell 2.6 per cent to €79.35. Rows over regulation and taxes have hit the sector in recent weeks.


Building materials giant and index heavyweight, CRH, dipped 0.7 per cent to €24.60.

House builders were out of favour. Cairn Homes fell 2.45 per cent to €1.356 while Glenveagh Properties slipped 2.14 per cent to 87 cent.


Irish convenience foods group Greencore ticked up 0.46 per cent to 194.85 pence sterling after announcing it had completed the sale of its US business to rival Hearthside for €863 million. The company's shares are listed in London but not on the Dublin market.

Shares in Royal Dutch Shell and BP were up 2.9 per cent and 2.4 per cent respectively, while energy services firm John Wood Group gained 7.6 per cent to lead gainers on the FTSE after HSBC upgraded the firm to buy. "Eager buyers would do well to tread carefully, since it looks like the occupant of the White House is still very keen on talking down the oil price," said IG chief market analyst, Chris Beauchamp. Faroe Petroleum surged 27 per cent after Norway's DNO launched a hostile bid to buy the independent oil and gas company for around £608 million. Faroe Petroleum rose to 159.6 pence per share, topping the 152 pence offered by DNO.

Dealmaking also boosted Vodafone Group in afternoon trading after a Reuters report that the European Commission was set to clear a merger in the Netherlands revived optimism about possible mergers activity in the hard-hit sector.

Shares in the telecoms group, which has a large Irish business, rose 6.25 per cent to 164.82p.


McDonald's burger bun supplier Aryzta surged more than 11 per cent after saying that revenues fell 5 per cent to €862.3 million in the three months ended October 31st, but adding that it expected mid to high single-digit growth in the 12 months ending July 31st 2019.

Shares in the Irish Swiss baker climbed 11.24 per cent to 1.346 Swiss francs in Geneva and closed 9.79 per cent ahead at €1.20 in Dublin.

Shares in European telecoms rallied 3.3 per cent after a report saying the European Commission was set to clear a merger in the Netherlands fuelled optimism about deal-making.

People familiar with the matter told Reuters that Deutsche Telekom was likely to win unconditional EU antitrust approval for its bid to buy Swedish peer Tele2's Dutch unit. The report sent shares in Tele2 up 9 per cent, while Dutch market leader KPN surged 5.8 per cent.

UBI Banca and Unicredit were among top Italian gainers up 6.4 per cent and 5.5 per cent respectively. The Italian banks' gains were amplified by short positions investors have been building up on the stocks in recent weeks.

In other sectors, shares in France's Saint-Gobain jumped 4 per cent after the construction materials group and CRH rival launched a new business strategy and management structure which it said would improve margins and result in more cost savings.


US stocks rebounded as investors picked up beaten-down energy and financial stocks, while retailers gained on hopes of a cyber Monday sales boost.

Ecommerce giant Amazon. com Inc jumped 3.4 per cent, providing the biggest boost to the S&P 500 and the Nasdaq.

General Motors jumped 6 per cent after the automaker said it would cut production of slow-selling models and slash its North American workforce.

Other automakers, including Ford and Fiat Chrysler, also rose.

Nvidia Corp rose 1.9 per cent after Credit Suisse began coverage of the chipmaker with an "outperform" rating. – Additional reporting, Reuters

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas