Global stocks extend rally

AFP, LONDON: European stocks jumped yesterday, mirroring gains in Asia, as investors welcomed Greece’s debt relief deal, bright German and US economic data, easing Brexit concerns and firmer oil prices.
The region’s markets had also climbed the previous day as opinion polls suggested Britain would vote to remain in the European Union in a crucial referendum next month.
Sentiment was boosted further Wednesday after eurozone ministers clinched vital agreement with Greece to unlock more bailout cash and start tackling the country’s debt mountain.
The deal releases 10.3 billion euros ($12 billion) in bailout funds that Greece urgently needs to repay big loans to the European Central Bank (ECB) and International Monetary Fund (IMF) in July, having already fallen behind in paying for everyday government duties and wages.
“With a much needed 10.3 billion euros in Greek bailout funds approved in the early hours of the morning, the European markets have gotten off to a perky start,” said analyst Connor Campbell, at trading firm Spreadex.
“The eurozone finance ministers were at it all night... to hash out a deal that satisfies both those opposed to major debt relief—Germany—and those who are adamant that Greece cannot survive without it—the IMF.”
Around 1115 GMT, the London stock market was up 0.6 per cent and Paris added 0.9 per cent in value compared with Tuesday’s close.
Frankfurt rallied 1.3 per cent after a key survey showed that German businesses are feeling increasingly positive over the economic outlook in the eurozone powerhouse.
The Ifo institute’s business climate index rose by a full point to 107.7 points in May, comfortably outpacing analysts’ expectations, Ifo said in a statement.
The better-than-expected data reinforce the resilient picture of the German economy, which more than doubled its growth pace to 0.7 per cent in the first three months.
The Ifo confirms “the German economy is starting to benefit from an uptick in economy activity of some of their major trading partners like China and the United States”, said analyst Markus Huber, at City of London Markets.
The energy sector forged higher on rising oil prices, which boost profits and revenues.
London-listed Royal Dutch Shell was also lifted after it announced another 2,200 job cuts due to low oil prices and following its takeover of smaller rival BG Group.
Shell’s “A” share price soared 1.0 per cent to 1,671.50 pence in London, while rival BP saw its shares gain 1.3 per cent to 362.3 pence.
French peer Total won 1.1 per cent to 43.60 euros in Paris.
Back in London, Marks & Spencer plunged 7.9 per cent to 409.70 pence after the British retailer warned that a new turnaround plan would have a short-term hit on profits.

Global stocks extend rally

AFP, LONDON: European stocks jumped yesterday, mirroring gains in Asia, as investors welcomed Greeces debt relief deal, bright German and US economic data, easing Brexit concerns and firmer oil prices. The regions markets had also climbed the previous day as opinion polls suggested Britain would vote to remain in the European Union in a crucial referendum next month. Sentiment was boosted further Wednesday after eurozone ministers clinched vital agreement with Greece to unlock more bailout cash and start tackling the countrys debt mountain. The deal releases 10.3 billion euros ($12 billion) in bailout funds that Greece urgently needs to repay big loans to the European Central Bank (ECB) and International Monetary Fund (IMF) in July, having already fallen behind in paying for everyday government duties and wages. With a much needed 10.3 billion euros in Greek bailout funds approved in the early hours of the morning, the European markets have gotten off to a perky start, said analyst Connor Campbell, at trading firm Spreadex. The eurozone finance ministers were at it all night... to hash out a deal that satisfies both those opposed to major debt reliefGermanyand those who are adamant that Greece cannot survive without itthe IMF. Around 1115 GMT, the London stock market was up 0.6 per cent and Paris added 0.9 per cent in value compared with Tuesdays close. Frankfurt rallied 1.3 per cent after a key survey showed that German businesses are feeling increasingly positive over the economic outlook in the eurozone powerhouse. The Ifo institutes business climate index rose by a full point to 107.7 points in May, comfortably outpacing analysts expectations, Ifo said in a statement. The better-than-expected data reinforce the resilient picture of the German economy, which more than doubled its growth pace to 0.7 per cent in the first three months. The Ifo confirms the German economy is starting to benefit from an uptick in economy activity of some of their major trading partners like China and the United States, said analyst Markus Huber, at City of London Markets. The energy sector forged higher on rising oil prices, which boost profits and revenues. London-listed Royal Dutch Shell was also lifted after it announced another 2,200 job cuts due to low oil prices and following its takeover of smaller rival BG Group. Shells A share price soared 1.0 per cent to 1,671.50 pence in London, while rival BP saw its shares gain 1.3 per cent to 362.3 pence. French peer Total won 1.1 per cent to 43.60 euros in Paris. Back in London, Marks Spencer plunged 7.9 per cent to 409.70 pence after the British retailer warned that a new turnaround plan would have a short-term hit on profits.