Shares gain after EU leaders clinch stimulus deal

European shares closed above four-month highs on Tuesday after EU leaders agreed on a landmark stimulus package to revive the bloc’s economies from a coronavirus-induced slump.

Dublin

The Iseq All-Share index rose 0.61 per cent on Tuesday with banks among gainers after the European Union agreed to the stimulus plan.

AIB climbed the most among financials, rising 5.86 per cent to €1.26 while Bank of Ireland gained 5.25 per cent to close at €1.925. Investor appetite was quite strong on the day with about 11 million shares traded in AIB and eight million traded in Bank of Ireland.

It was a mixed day for airlines with Dublin-listed Ryanair managing to stay relatively flat. The stock rose 0.77 per cent to €11.15 as EasyJet fell while Aer Lingus-owner IAG and Wizz Air rose.

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Despite no sector specific news, it was a strong day for property names. Investor Hibernia Reit gained 5.47 per cent to finish the day at €1.15. Housebuilders Cairn Homes and Glenveagh Properties rose 2.7 per cent to 87 cent and 3 per cent to 72 cent respectively.

Elsewhere, Paddy Power-owner Flutter Entertainment managed to gain 0.87 per cent to close at €127.65 despite its peer GVC plunging after it said it is under investigation by the UK tax authorities over its former Turkish online gambling business.

London

The mid-cap FTSE 250 closed 0.7 per cent higher at a two-week peak while the blue-chip FTSE 100 ended up 0.1 per cent, as gains in energy were offset by drugmaker AstraZeneca.

BHP Group, the world's largest miner, and rival Rio Tinto weighed on the FTSE 100 after the former reported higher quarterly iron ore output, but warned of a hit to demand for the material from the outbreak.

Ted Baker soared 14.4 per cent after the struggling fashion retailer said it performed better than expected in the 11 weeks to July 18th.

Ladbrokes owner GVC marked its worst day since early-April after saying British tax authorities had expanded an investigation into the gambling company's former online business in Turkey to include unidentified entities within the group.

Europe

The pan-European Stoxx 600 jumped as much as 1.3 per cent before ending 0.3 per cent higher at its highest since early March. Oil stocks were the biggest boost, also marking their best session since early March, as crude prices surged.

Topping the Stoxx 600 index was Adevinta which soared 26 per cent after US group Ebay agreed to sell its classified ads business to the Norwegian group in a deal worth $9.2 billion.

In earnings-driven moves, Randstad Holding jumped almost 9 per cent after the staffing company reported a smaller-than-expected drop in quarterly core earnings.

The biggest drag on the index was Novartis, down 1.9 per cent after the drugmaker trimmed its 2020 sales forecast as coronavirus related disruptions hit its quarterly revenue. Europe's healthcare index was the worst sectoral performer, down 1 per cent with AstraZeneca also declining after a University of Oxford researcher flagged uncertainty about rolling out its possible Covid-19 vaccine – licensed to AstraZeneca, by the end of the year.

New York

The S&P 500 and the Dow indexes rose on Tuesday following a slate of positive earnings reports from companies including IBM and Coca-Cola.

The Nasdaq eased as shares of Amazon. com fell 1.7 per cent following a near 8 per cent jump a day earlier.

International Business Machines gained 1.5 per cent after it signalled higher demand in its cloud computing business, as large corporations accelerate their digital shift.

Coca-Cola rose 3.2 per cent as it said demand for its soft drinks were improving after the "most challenging" quarter for the year.

Lockheed Martin rose 2 per cent as the US weapons supplier raised its full-year profit and revenue forecasts, driven by higher quarterly sales in its aeronautics unit that makes the F-35 fighter jet. – Additional reporting: Reuters