Paris CAC:3,942.53 (-8.45) Frankfurt DAX:7,160.30 (-3.17) Eurostoxx 50:2,814.34 (-5.06)
EUROPEAN SHARE prices ticked higher yesterday, helped by renewable energy shares that gained on Germany’s decision to shut all its nuclear reactors by 2022, a move that hit the big power utility stocks.
At 1133 GMT, the FTSEurofirst 300 index of top European shares was up 0.1 per cent at 1,135.11 points, adding to the previous sessions gains. Volumes were thin as both US and UK markets were closed for national holidays.
German utilities RWE and E.ON fell 2.2 per cent and 1.8 per cent respectively while French nuclear engineering group Areva dropped 4 per cent after parties in Chancellor Angela Merkels coalition government decided the country should close all of its nuclear power plants, in a reaction to Japans Fukushima disaster.
Renewable energy companies got a boost from the news, with SolarWorld up 7.8 per cent, Q-Cells gaining 10.2 per cent and Renewable Energy rising 3.5 per cent.
“Solar companies are going to benefit gradually because of the closure of nuclear plants. High oil prices will also induce people to move towards solar energy,” said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.
Share prices in the utilities sector dropped sharply in March when a massive earthquake and tsunami hit Japan and sparked a nuclear crisis. RWE has lost about 17 per cent since March 11th, while E.ON is down about 15 per cent.
Lingering concerns about the euro zone debt crisis also kept market gains under check. European Union and International Monetary Fund officials are expected to deliver their verdict this week on Greece’s faltering drive to bring its budget deficit under control.
European Central Bank board member Lorenzo Bini Smaghi said the idea that a Greek debt restructuring could be carried out in an orderly way is a “fairytale”, while Ireland’s Transport Minister Leo Varadkar said on Sunday his country might have to ask for another loan from the EU and the IMF.
The euro zones blue-chip Euro STOXX 50 index was up 0.2 per cent at 2,824.15 points, but remained below the low end of a downward gap opened last Monday, which has become a key resistance level. – (Reuters)
