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European stocks rebound

Aug 17 2015 12:52

London - European stock markets rose on Monday in a quiet start to a week that is set to be dominated by more developments over China and Greece.

London's benchmark FTSE 100 index edged up 0.01% to stand at 6 551.67 points nearing midday in the capital, with gains capped by a weak mining sector.

Frankfurt's DAX 30 won 0.54% to 11 044.62 points and the CAC 40 in Paris climbed 0.65% to 4 988.67 compared with Friday's close.

The euro dipped to $1.1100 from $1.1112 late on Friday in New York.

Europe's main stock markets had closed slightly lower on Friday at the end of a turbulent week for equities and other financial markets, triggered by concerns over the Chinese and Greek economies.

"European markets have started the week higher, buoyed by Greece finally approving their new bailout deal - however, the UK market continues to underperform, as weaker commodity prices weigh on the mining and oil-heavy FTSE 100 index," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.

German chancellor Angela Merkel and her hardline Finance Minister Wolfgang Schaeuble on Sunday hailed a dramatic change in Greece's approach to its debt crisis ahead of a key parliamentary vote in Berlin on a fresh bailout.

Before German MPs are asked to approve a third rescue package for debt-mired Greece on Wednesday, Merkel said the eurozone partner's new willingness to embrace reforms was down in part to Berlin's - and in particular Schaeuble's - unyielding stance.

Athens' main stocks index was up 0.72% at 678.76 points in Monday trading.

Asian indices closed mixed, with Tokyo helped by better-than-expected Japanese growth figures and Shanghai boosted by a government pledge to support China's volatile stock markets.

The dollar strengthened after solid US data boosted expectations of an imminent rate rise, heaping pressure on oil prices.

READ: Dollar gains on September rate hike hopes

China's central bank meanwhile raised the value of the yuan against the dollar by 0.01%, the national foreign exchange market said, after a devaluation last week rocked markets.

On the corporate front, shares in Airbus won 1.31% to €63.22 after the European plane maker said Indian airline IndiGo confirmed an order for 250 A320neo planes - in a deal first announced last year.

Airbus' largest-ever contract by number of planes is worth a massive $26.5bn prior to the usual discounts, and brings to 530 the number of A320 and A320neo medium-haul planes owned by the low-cost operator.

LafargeHolcim meanwhile won 1.60% to €61.10 as the Franco-Swiss cement giant said it was selling some of its operations in India to Birla Corporation Limited for €692m.

The move, part of plans to cut debt, comes after the July merger of Lafarge and Holcim to create the world's largest cement company.

european markets  |  equities  |  markets
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