Europe stocks rebound after two-day dip

Stocks were mixed around the world yesterday, with shares in Europe rebounding after a two-day decline, while Wall Street was only slightly higher, with further gains limited by the uncertainty surrounding Greece.

The euro fell yesterday as it appeared more likely that debt-stricken Greece would default or have to leave the single currency, while the American dollar rose ahead of a meeting by the US Federal Reserve. DUBLIN Volumes were light on the Dublin market yesterday, despite some volatility.

Bank of Ireland performed “quite well” according to one Dublin analyst, rising nearly 1 per cent to 34 cent.

Permanent TSB finished the day up 2.8 per cent at €4.45, following a positive note from Bank of America.

Insulation manufacturer Kingspan was also up, climbing 2.2 per cent to €20.60. Davy Stockbrokers had a note out last week recommending the stock as a buy.

AIB, Paddy Power, CRH, First Derivatives and Green Reit were all flat on the day.

Ryanair, meanwhile, fell 1.2 per cent to €44.61.

The Iseq index of Irish shares finished the day flat at 6,172.81. LONDON UK stocks erased losses to close little changed as the Ftse 100 Index heads for a fourth straight weekly decline.

Rio Tinto and Anglo American retreated, as a gauge of European commodity shares posted the only decline among industry groups in the Stoxx Europe 600 Index.

Ashtead Group, the equipment-rental company that gets most of its revenue from North America, slipped after reporting full-year earnings.

British American Tobacco gained 2.9 per cent after Credit Suisse recommended buying the shares.

The Ftse 100 declined less than 0.1 per cent to 6,710.1 at the close in London, the lowest since March 10th. EUROPE European stocks rebounded from their biggest two-day drop since April, helped by a rally in German shares.

Greek shares fell amid a debt impasse.

Medical supplies company Coloplast plunged 7.9 per cent after the firm lowered its forecasts for revenue growth and profit margin.

Air France-KLM Group slipped 3.4 per cent after saying it will review investment plans and scrap some routes.

The Stoxx Europe 600 Index added 0.6 per cent to 385.49 at the close of trading. It reversed losses of 1.1 per cent after the European Commission said it would restart discussion with Greece if it offered new proposals.

Germany’s DAX Index also swung to gains, rising 0.5 per cent as a drop in the euro helped exporters, while France’s Cac-40 index closed up 24.5 at 4839.9.

Greece’s ASE Index fell 4.8 per cent, completing the biggest three-day drop since anti-austerity party Syriza took charge in January. US US stocks advanced, after two days of declines, as investors assessed the chances for an agreement between Greece and its creditors while Federal Reserve policy makers began a two-day meeting.

Aetna and UnitedHealth Group rose more than 1.4 per cent amid speculation the health-insurance industry is headed for a round of mergers.

Airlines led declines among industrial shares. American Airlines, Southwest Airlines and Delta Air Lines dropped more than 1 per cent.

Healthcare supplier Perrigo advanced 2.7 per cent after Abbott Laboratories said it would vote its 14.5 per cent stake in favour of Mylan's $33 billion bid for Perrigo at a shareholder meeting on a potential deal in July or August.

The Standard and Poor’s 500 Index climbed 0.3 per cent to 2,090.62 at 11:54 am in New York, with the gauge above its average price during the past 100 days.

– (Additional reporting: Bloomberg, Reuters)