Stocks up as euro rallies to three-week high

Paris CAC: 4,007 (+64.41) Frankfurt DAX: 7,294 (+133.39) Eurostoxx 50: 2,861 (+46.74)EUROPEAN STOCKS climbed after the euro rallied to a three-week high as investors speculated that European officials will sanction additional financial assistance for Greece.

Alpha Bank and EFG Eurobank Ergasias led a rally in Greek banks, climbing more than 8 per cent in Athens trading. Vestas Wind Systems led alternative-energy stocks higher for a second day. Steelmakers also advanced after Voestalpine posted higher full-year profit.

Nokia Oyj plunged 18 per cent after the company cut its second-quarter and full-year outlook for devices and services.

The euro rallied against the dollar after Luxembourg prime minister Jean-Claude Juncker said European leaders would decide on a new aid package for Greece by the end of next month, while also ruling out a “total restructuring” of the nation’s debt.

France’s CAC 40 index climbed 1.6 per cent and Germany’s Dax index jumped 1.9 per cent, while the UK’s FTSE 100 index gained 0.9 per cent. Greece’s ASE index soared 5.6 per cent, its largest gain in a year.

Standard Chartered rose 1.4 per cent to 1,628 pence after Nomura Holdings raised its recommendation for the UK bank that makes the majority of its profit in Asia to “buy” from “neutral”.

Vestas soared 3.4 per cent to 156.20 kroner in Copenhagen, while Germany’s Q-Cells surged 7.9 per cent to 2.07 euros.

Alternative energy stocks rallied for a second day after German chancellor Angela Merkel’s coalition yesterday set 2022 as the final date to close the country nuclear reactors, making Germany the largest nation to abandon atomic power.

Voestalpine advanced 4.4 per cent to 34.78 euros after Austria’s largest steelmaker said fiscal full-year profit rose almost fivefold to 512.7 million euros as the global economy improved.

Kloeckner and Co, the German steel trader operating in 15 countries in Europe and North America, gained 2.5 per cent to 20.60 euros and ArcelorMittal, the world’s largest steelmaker, rose 1.2 per cent to 23.18 euros. Salzgitter, Germany’s second-biggest steelmaker, jumped 2.6 per cent to 51.35 euros.

Nokia tumbled 18 per cent to 4.75 euros, its lowest price since 1998. – (Bloomberg)