Markets rejoice as Grexit fears recede

The Iseq in Dublin soared by about 1.7 per cent as investors celebrated the Greek bailout deal and the avoidance of the country’s exit from the euro.

US stocks climbed while European equities capped the biggest rally since 2011 on news of the agreement, while currency traders took the deal as a green light to sell the euro.

The euro zone’s Euro Stoxx 50 index hit a two-week high and was up 1.8 per cent by the close. The index has gained about 9 per cent since last Tuesday’s close.

The pan-European FTSEurofirst 300 index rose 1.9 per cent while Germany’s DAX, France’s CAC and Britain’s FTSE 100 all rose between 1 per cent and 1.9 per cent.

DUBLIN

Agri business Origin Enterprises fell by almost 1.3 per cent to close at €7.70, in the wake of a US report that forecast lower global consumption of wheat and a modest increase in output, hitting prices. Investors speculated that it might hit the company’s agri sales to farmers.

Bank of Ireland rode the wave of relief that swept over the European banking sector on the Greek news. It was up by almost 1.8 per cent, closing at more than 37 cents a share.

Ryanair opened up and was heavily traded throughout the day, as investors continued to digest Friday's news that it is prepared to sell its Aer Lingus stake, effectively getting its money back with a possible special dividend on the way. It rose 1.6 per cent.

Aer Lingus finished the session up a fraction of a per cent.

LONDON

Shares in mid-cap Alent spiked 44.2 per cent after US chemicals maker

Platform Specialty Products

said it would buy the British company for about £1.35 billion in cash to expand its portfolio and reduce costs.

Miners rose 3.1 per cent as the Bloomberg Commodity Index climbed for a fourth day.

IAG, which is on the verge of gaining European Commission competition clearance for its near-€1.4 billion takeover of Aer Lingus, added 3.4 per cent after UBS Group raised its rating to buy from neutral.

EUROPE

The euro zone’s banking index advanced 2.1 per cent, helped by gains for Société Générale,

Crédit Agricole

and

UniCredit

, the shares of which were up by 1.6 per cent to 3 per cent. The region’s volatility index, a crude indicator of investor concern, dropped 4.6 points to a two-week low.

International Personal Finance dropped 25.2 per cent, the biggest decline on the Stoxx Europe 600, after a proposed change in a Polish law that could hit the company’s results.

Sanofi climbed 2.8 per cent after Deutsche Bank recommended buying the stock, citing its drug pipeline. DKSH Holding lost 2.3 per cent after putting its Maurice Lacroix watch brand up for sale.

NEW YORK

By the afternoon, an index of 30 retailers in the S&P 500 had climbed to an all- time high, bolstered by

Netflix

and

Amazon

as both reached records.

Home Depot advanced 1.3 per cent to its highest since May 19th, while Priceline Group increased 2.5 per cent.

Under Armour jumped 3.1 per cent to an all-time high, and Nike added 1.5 per cent, also to a record.

Banks in the benchmark index rose for a third day, their best such streak since March. Treasury yields also advanced for a third session, and investors speculated that higher interest rates will help boost lenders' profits. Bank of America and Citigroup gained at least 1.2 per cent.

Anacor Pharmaceuticals soared 56 per cent to a record after the company said its experimental dermatitis drug helped patients in a final-stage trial.

Airline stocks rose for the fifth time in six sessions, as American Airlines Group and SkyWest jumped at least 2.5 per cent. – Additional reporting Reuters/Bloomberg