European shares slip from three-week high

Market slip blamed on Bank of England’s surprise move not to cut rates

The Bank of England: its announcement that interest rates would remain unchanged caused the FTSE 100  to fall back from a fresh 11-month high during the session to finish 15.9 points down at 6,654.47. Photograph: Chris Ratcliffe/Bloomberg

The Bank of England: its announcement that interest rates would remain unchanged caused the FTSE 100 to fall back from a fresh 11-month high during the session to finish 15.9 points down at 6,654.47. Photograph: Chris Ratcliffe/Bloomberg

 

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

Bank of Ireland

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

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

FranceUniCreditCitigroup

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

JPMorgan’s

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)