European stocks claw back up after four-day drop

AIB among star performers as Dublin edges up on renewed hopes of Brexit deal

AIB closed up 0.9 per cent to €3.80 after reports that it is to sign off on the sale of a €1 billion non-performing loan portfolio known as “Project Beech.” Photograph: Cyril Byrne

AIB closed up 0.9 per cent to €3.80 after reports that it is to sign off on the sale of a €1 billion non-performing loan portfolio known as “Project Beech.” Photograph: Cyril Byrne

 

European shares rose on Tuesday, snapping a four-day losing streak, boosted by healthcare stocks and on indications that UK prime minister Theresa May’s deal to exit the European Union could gain some support.

Dublin

The Dublin market, often considered a barometer of Brexit mood, bounced off a five-week low hit early in the session to end 0.2 per cent higher after prominent Eurosceptic MPs in Britain indicated they might agree to support Theresa May’s Brexit deal after parliament took control over the process for a day.

Iseq heavyweight CRH was down 1.25 per cent to €26.83 after peer Ferguson, the world’s largest heating and plumbing equipment supplier, said trading profit would likely be at the lower end of analyst expectations this year.

AIB outperformed its peers in the banking sector after reports that it is to sign off on the sale of a €1 billion non-performing loan portfolio known as “Project Beech.” It closed up 0.9 per cent to €3.80.

Ryanair was another outperformer, closing up 0.7 per cent to €11.49 as rival EasyJet was off 2 per cent.

Irish property stocks did well on the day with Green, Hibernia and Ires Reit all up between 1.5 to 2 per cent.

Paddy Power Betfair gained 2.5 per cent with higher than normal volumes ahead of their investor day in New Jersey on Thursday.

Independent News & Media, which has results out on Friday, was another gainer, up 2.2 per cent to 0.72 cents.

London

London’s main index bounced back from two sessions of losses as exporters were boosted by a strong dollar, while oil companies rose on higher crude prices, and online grocer Ocado surged to a record high on its latest partnership deal.

The FTSE 100 added 0.3 per cent, lagging behind European peers as Brexit uncertainties kept a lid on gains, while the FTSE 250 firmed by 0.5 per cent.

Leading gains on the main index were internationally focused stocks, such as Diageo, GlaxoSmithKline and Reckitt Benckiser, lifted by a stronger dollar as US benchmark 10-year yields recovered from 15-month lows.

Ocado rose 4.1 per cent to a record high after signing a partnership deal with Australia’s Coles Group in its fifth major overseas tie-up in less than 18 months.

London-listed shares in Carnival, the world’s largest cruise operator, slumped by 8.5 per cent after it cut its annual profit forecast on an expected hit from higher fuel prices and a stronger dollar.

Ferguson, meanwhile, slid 7.2 per cent on its worst day in nearly three years after warning of lower trading profit.

Europe

European stocks were on the up on Tuesday with the pan-region Stoxx 600 index adding to early gains and rising 0.8 per cent.

German payments company Wirecard soared 26 per cent, leading gains on the Stoxx 600, after an investigation at the company’s Singapore office found no material wrongdoing.

ConvaTec rose nearly 6 per cent after Swedish business daily Dagens Industri said several players are running the numbers on the UK medical device maker for a possible buyout after the stock’s recent slump.

Airbus’s 2 per cent gain was among the biggest boost to stocks in Paris, after the planemaker signed a deal worth tens of billions of dollars to sell 300 aircraft to China.

New York

Wall Street’s main indexes rose on Tuesday, as Apple and chipmakers boosted technology shares, while higher oil prices lifted energy companies.

The tech sector added 0.50 per cent, helped by gains in Apple which rose 0.84 per cent, a day after the iPhone maker unveiled its video streaming service, a credit card and an online gaming arcade.

Nvidia rose 1.61 per cent after brokerage Piper Jaffray initiated coverage on the chip designer with an “overweight” rating.

Viacom jumped 9.19 per cent after the New York Post reported the company and CBS were rekindling merger talks. CBS shares rose 4.68 per cent. – Additional reporting: Reuters