Eurostoxx 50: 2,151.16 (+71.06) Frankfurt DAX: 5,405.53 (+211.56) Paris CAC: 3,073.18 (+107.54):GERMAN STOCKS rebounded yesterday from four days of losses. The nation's top court, meanwhile, rejected lawsuits against Germany's participation in European rescue funds.
Greek banks rallied after the German court rejected challenges to the participation of Europe’s largest economy in euro rescue funds. They were led by the National Bank of Greece which gained 7.9 per cent to €3. EFG Eurobank climbed 6 per cent to €1.23 and Piraeus Bank jumped 7.4 per cent to €58.
Chipmaker Infineon Technologies and BMW, the car maker, led gains, moving up 4.6 per cent to €5.39 and 5 per cent to €53.22, respectively. Eon was up 1.9 per cent to €13.72 and RWE rose 1.7 per cent to €23.15 on a report that the power generating companies may sell their stakes in UK nuclear power company Urenco. The Xetra Dax Index advanced 2.4 per cent to 5,316.62, after slumping 10 per cent over the previous four days.
This came as reports in the US, Europe and China pointed toward a slowdown in global growth, which would curb demand for Germany’s exports. The bench-mark gauge has retreated 29 per cent from this year’s high on May 2nd.
“The market is perhaps due for a relief rally after some sharp declines,” said Colin Tan at Deutsche Bank.
Italian stocks opened sharply up yesterday, with car maker Fiat leading gains, up 5.7 per cent to €3.89. The FTSE MIB rose 2.8 per cent to 14,441.61, after Italy’s government promised on Tuesday to hike value-added tax, bowing to market pressure for more action on its swollen debt.
Wartsila rose 6.2 per cent to €18.49 as the Finnish engineering firm said it had won a power plant order worth €155 million from gold miner Barrick Gold Corporation’s subsidiary in the Dominican Republic.
European car makers headed higher, responding to a more positive mood across European markets.
Renault gained 4.9 per cent to €25.16 and Porsche gained 5 per cent to €43.98.
Netherlands beer maker Heineken fell 0.6 per cent to €33.75 as Goldman Sachs cut its rating to “neutral” from “buy”. – (Copyright The Financial Times Limited 2011)
