Rise in bank stocks caps off biggest quarterly advance since 2009

Banks led European stocks higher after equities completed the biggest quarterly advance since 2009. The Stoxx Europe 600 Index added 0.3 per cent to 398.52 at the close of trading.

It briefly erased almost all its gains after a report said Greece may seek to delay an April 9th deadline to repay IMF loans. A Greek government official later denied the report.

DUBLIN The Iseq index underperformed European rivals, closing down marginally at 6,010.

The main drag was Aryzta. On Tuesday, the Swiss-Irish food giant's shares dropped nearly 8 per cent on the back of unexpected news it was planning to buy a 49 per cent stake in French food company Picard. The decline continued into yesterday with the stock falling another €2 or 3.4 per cent to close at €56. Building group CRH saw its stock fall 15 cent to €24.07, and Ryanair dropped marginally to €11.09.

Bank of Ireland rose nearly 1 per cent to close at 35 cent, buoyed by a sector-wide surge in stocks. The upward shift partially reversed a 7.8 per cent fall on Tuesday on the back of Fairfax's decision to sell its stake.

LONDON Britain's top share index bounced back yesterday, with data showing manufacturing grew at the fastest pace in eight months, prompting investors to buy equities on the first trading day of the quarter.

Online fashion retailer Asos gained after saying its strategy of cutting prices in international markets was building momentum. The blue-chip FTSE 100 closed 0.5 per cent higher at 6,809.50 points after a 1.7 per cent slide on Tuesday that trimmed its first-quarter gains to 3.2 per cent.

The UK oil and gas index advanced 1.4 per cent, tracking a sharp rally in Brent crude oil prices as talks over Iran’s nuclear programme continued, curbing expectations of an immediate deal that would allow Iranian crude on to the market.

The banking index, which fell 1.7 per cent on Tuesday, rose 1.1 per cent on expectations an economic recovery will help cyclicals such as banks. Barclays rose 2.8 per cent. Lloyds gained 1.4 per cent.

Shares in Quindell were suspended earlier in the day before the tech and outsourcing company issued a statement clarifying profits at its professional services division. The shares closed 0.2 per cent lower.

EUROPE Banks contributed the most to the Stoxx Europe 600 Index's gains. Barry Callebaut jumped 6.6 per cent after the maker of bulk chocolate reported first-half earnings that beat estimates and forecast faster volume growth in the second half.

A gauge of technology shares posted the worst drop among Stoxx 600 industry groups. Neopost fell 6.9 per cent after reporting annual profit that missed analysts' projections. William Demant lost 2.5 per cent after UBS cut its rating on the shares to sell.

US Stocks initially fell for a second day and the dollar dipped after a weaker-than-expected report on private sector employment spurred investor concerns an anticipated monthly US jobs report tomorrow could also point to slowing economic growth.

Oil futures rallied as talks over Iran’s nuclear program continued, curbing expectations of an immediate deal that would allow Iranian crude on to the market.

The Dow Jones industrial average initially fell 76.6 points, to 17,699.52, the S&P 500 lost 7.47 points to 2,060.42 and the Nasdaq Composite dropped 25.44 points to 4,875.45.

Healthcare and industrial shares led declines in US stocks, with losses of more than 0.7 per cent. Boeing slid 1.6 per cent, while Merck and Co tumbled 1.9 per cent. A Bloomberg index of US airlines dropped 3.1 per cent after Delta Air Lines, United Continental and American Airlines were cut to hold by Deutsche Bank analyst Michael Linenberg. The Nasdaq Biotechnology Index dropped 1.5 per cent as Regeneron Pharmaceuticals and Vertex Pharmaceuticals retreated 2.4 per cent. – Additional reporting: Bloomberg, Reuters