Eurostoxx 50: 2,347.94 (+56.05) Frankfurt DAX: 6,133.18 (+167.55) Paris CAC: 3,195.47 (+84.88):EUROPEAN STOCKS advanced yesterday, after the euro-area central bank unexpectedly cut the benchmark interest rate and Greek prime minister George Papandreou signalled he will not call a referendum on the latest bailout package.
The benchmark Stoxx Europe 600 Index climbed 2.1 per cent in London, after the European Central Bank’s rate decision.
“From a market perspective, it seems to be good news. It somehow reduces uncertainty and may pave the way for the implementation of the austerity measures,” said Stephane Ekolo, chief European strategist at Market Securities in London.
The ECB unexpectedly cut interest rates as Italian and Spanish borrowing costs soared after euro-area leaders raised the prospect of Greece exiting the monetary union.
Mr Papandreou signalled he will not call a referendum calling into question Greece’s membership of the euro, saying he will ask the opposition to form a transitional government.
The Stoxx 600 has lost 2.6 per cent so far this week as the Greek referendum call surprised euro-area leaders who cut off aid to the region’s most indebted country.
National Bank of Greece rose 11 per cent to €1.80. Alpha Bank climbed 15 per cent to €1.07.
Banks rose throughout Europe, with BNP Paribas, France’s biggest bank, advancing 8.7 per cent to €32.26.
Commerzbank, Germany’s second-largest lender, added 5.7 per cent to €1.76.
Swiss Re rose 6.1 per cent to 49 Swiss francs. The reinsurer said third-quarter profit more than doubled to $1.35 billion. That beat the $539 million average estimate of analysts surveyed by Bloomberg.
Aker Solutions surged 10 per cent to 67.15 kroner. Norway’s biggest oil platform maker said third-quarter net income more than tripled to 1.12 billion kroner.
ING rallied 9.4 per cent to €6.18. The biggest financial-services company in the Netherlands said it plans to cut 11 per cent of the jobs at its Dutch bank.
Tenaris soared 15 per cent to €12.85. The world’s largest maker of seamless pipes said third-quarter profit rose 7 per cent on higher demand in the US and Europe and increased prices. – (Bloomberg)
