Stocks rally across region on Greek bailout hopes

Eurostoxx 50: 2,801.99 (+53.99) Frankfurt DAX: 7,285.51 (+135.30) Paris CAC:3,877.07 (+77.41)

EQUITY MARKETS in Europe were higher yesterday on hopes that Greek politicians can agree on fiscal reforms after international lenders gave the country two weeks to push through tough austerity measures as a condition for releasing new bailout funds.

The FTSE Eurofirst 300 began the session with gains of 0.8 per cent, while the Athens General index added 1.2 per cent.

Syngenta, a Swiss agricultural chemicals and genetically modified crops company, gained 3.3 per cent to SFr278 after saying sales of some of its important crops could double to more than $17 billion after 2015.

European aerospace group EADS climbed 1.6 per cent to €21.59 after its wholly owned subsidiary Airbus on Monday announced an order for 60 of its A320 aircraft from General Electric’s commercial leasing and financing arm.

The deal was announced at the Paris Air Show that continued to drive European shares.

Safran, whose Leap-X engine will be used in GE’s Airbus order, climbed 3.5 per cent to €29.21.

BP rose 3.7 per cent to 445.7p, the largest advance since January, after Weatherford agreed to pay Europe’s second-biggest oil company $75 million to cover its liability for any current or future claims related to the Macondo oil spill.

Royal Dutch Shell gained 2.1 per cent to 2,158.5p.

Petropavlovsk surged 7.6 per cent to 729.5p, the biggest advance since November. The producer of gold in Russia said sales of the precious metal increased 64 per cent through the first five months of this year as prices increased.

Nokia Oyj rallied 3.9 per cent to €4.21 paring Monday’s 4.3 per cent sell-off, after the company unveiled the N9 smartphone in Asia to fend off competition from phones powered by Google’s Android.

Fortum Oyj dropped 2.6 per cent to €19.99, extending yesterday’s 7.6 per cent slide after the Finnish government agreed to implement a windfall tax.

Misys surged 9 per cent to 418.9p after the provider of software for the financial industry said it has received an approach that may or may not lead to a takeover offer. – (Copyright The Financial Times Limited 2011)