Markets bounce back after Brexit carnage

European shares rise after three grim days, with financial stocks leading the way

The headquarters of Nestlé’s French section in the old Meunier chocolate factory: the company’s stocks rose 3.3 per cent after naming Ulf Mark Schneider as  chief executive officer. Photograph: Thomas  Samson/AFP/Getty Images

The headquarters of Nestlé’s French section in the old Meunier chocolate factory: the company’s stocks rose 3.3 per cent after naming Ulf Mark Schneider as chief executive officer. Photograph: Thomas Samson/AFP/Getty Images

 

European shares rose for the first time in three days yesterday after a heavy sell-off following Britain’s shock vote to leave the European Union, with battered financial stocks leading the bounce.

The Iseq in Dublin advanced more than 2.8 per cent while almost every stock on the FTSE 100 Index climbed amid a global rebound following the worst plunge since August.

DUBLIN

Bank of IrelandCRHSmurfit Kappa

There were mixed performances from Irish-listed travel stocks. Datalex, the Dermot Desmond-backed technology company that sells software to airlines, was up 9 per cent, clawing its way back from negative territory.

Ryanair was up more than 3 per cent, although it didn’t recover as much as its British peers EasyJet and IAG. Meanwhile, Irish Continental Group, the owner of Irish Ferries, was down more than 1 per cent.

C&C, the Bulmers-Magners cidermaker that is heavily weighted towards the UK market, finished the day down 2 per cent after giving up its early morning gains.

LONDON

Lloyds, PrudentialHargreaves Lansdown

Barratt Developments and Taylor Wimpey led housebuilders higher in the FTSE 100, up 7 per cent and 5 per cent respectively.

Bovis Homes was up 37.5p to 680p in the FTSE 250 Index. Builders have been hit hard amid fears over the impact of the vote on property prices.

Retailers saw strong gains in the rally, with Next , the biggest blue chip riser in the sector, up 8 per cent. It was followed by Marks & Spencer with a rise of more than 5 per cent.

Rolls-Royce also rose after it reaffirmed its commitment to the UK despite Brexit and said currency movements would boost underlying revenues by around £400 million.

EUROPE

Greece’s Alpha Bank surged 11 per cent, while Unione di Banche Italiane added 8.2 percent, leading Italian lenders higher. Italy’s government has sounded out regulators on ways to shore up its banks after their shares were hammered.

Shares in Volkswagen rose 1.7 per cent after the German automaker agreed to pay more than $15.3 billion to settle charges that it cheated on US diesel emissions tests. Some analysts remain cautious on the stock due to other outstanding legal risks.

Nestlé advanced 3.3 per cent after naming Ulf Mark Schneider as successor to chief executive officer Paul Bulcke.

NEW YORK

Gilead SciencesCelgene CropRegeneron PharmaceuticalsBiogen

Banks in the S&P 500 increased 1.7 per cent after falling 10 per cent in two sessions. JPMorgan Chase and Wells Fargo added more than 1.4 per cent. Comerica and Regions Financial were among the biggest gainers in the group, climbing at least 2.3 per cent after back-to-back losses of more than 16 per cent

Facebook and Visa rose more than 2.1 per cent to boost the tech group, while energy producers rallied with crude. The S&P 500 Index gained 1.1 per cent.

(Additional reporting: Bloomberg/Reuters/PA)