Eurostoxx 50: 2,491.54 (+0.43%) Frankfurt DAX: 6,738.47 (+0.68%) Paris CAC: 3,384.55 (+0.34%)

WORLD STOCKS rose yesterday after Greeces parliament passed drastic austerity measures to avoid a messy debt default, but doubts about whether European leaders will support Athens with a new rescue package curbed an initial euro rally.

DUBLIN

STOCK IN Dublin failed to catch the sense of optimism, or relief, elsewhere.

Index heavyweights Elan, Paddy Power and Glanbia all lost ground while Bank of Ireland along with Irish Life Permanent singularly missed out on the positive market sentiment for banks in the wake of parliamentary confirmation of the Greek deal.

On the upside, takeover speculation continued to drive explorer Kenmare and building materials group Readymix ahead.

Kenmare was one of the Iseq’s strongest performers yesterday amid continuing speculation that it may be a takeover target for Rio Tinto or a Chinese group. It ended the day 5.5 cent, or 8.7 per cent firmer, on 69.1 cent. Readymix added a cent to trade on 23 cent, still below the increased 25 cent a share takeout offer from majority shareholder Cemex.

LONDON

IT WASN’T just in Dublin that Kenmare was among the gainers yesterday, as a rebound for the mining sector helped lift the FTSE 100 to a new six-month high.

Kenmare gained 10.2 per cent in London to 58½p. Bid gossip has lifted the titanium miner by nearly 18 per cent in two sessions.

The FTSE 100 rose 53.31 points, or 0.9 per cent, to 5,905.70.

Evraz, the Russian steelmaker, led the risers with a 3.1 per cent advance to 425p, while Rio Tinto was up 2 per cent at £38.46.

Anglo American rose 2.6 per cent to £28.17 even after its Anglo Platinum subsidiary missed earnings expectations and cut its 2012 sales target. The lower target helped rival platinum producers, with Lonmin up 2 per cent to £10.35.

But Glencore International fell 1.4 per cent to 429¼p. Glencore will have no choice but to increase its existing all-share offer for Xstrata , said analysts at Jefferies. Xstrata rose 1.3 per cent to £12.13.

Financial stocks also moved higher.

CW Worldwide jumped 44.5 per cent to 28½p after Vodafoneconfirmed it was in the “very early stages of evaluating the merits of a potential offer”.

EUROPE

FRENCH BANKS were hit yesterday after a ban on short selling French financial stocks expired over the weekend.

The news took some time to sink into the market, with French lenders opening up before slumping as investors adjusted their portfolios. Société Générale opened 6.5 per cent up, but closed down 2.2 per cent at €22.74. It was a similar story for BNP Paribas, which closed down 2.1 per cent at €34.33 after opening 1.8 per cent up. Crédit Agricole, meanwhile, fell 3.6 per cent to €5.13, a 6.7 per cent drop from its opening price.

The end of the ban helped lift German lenders after short-sellers had previously focused on German banks as a negative play. Commerzbank gained 1.6 per cent to €2.09, while Deutsche Bank rose 0.5 per cent to €33.65.

The FTSE Eurofirst 300 enjoyed a cautious rally after the Greek parliament passed further austerity measures. Europe’s benchmark index rose 0.7 per cent to 1,071.63 amid thin volumes, with defensive stocks the strongest performers. In Paris, the CAC rose 0.4 per cent to 3,384.55. EDF led the index higher, gaining 2.7 per cent to €18.46, as utilities across Europe started the week positively. In Frankfurt, RWE gained 1.7 per cent to €32.16, as the Xetra Dax rose 0.7 per cent to 6,738.47.

In Greece, the Athens General index rose 4.7 per cent to 834.41, with double-digit percentage gains for banks.

US

US STOCKS rose, led by banks after the Greek parliamentary approval of strict financial reforms needed to obtain an international bailout package.

On Wall Street financials were the strongest performers. Bank of America climbed 2.2 per cent to $8.25 and Citigroup advanced 1.3 per cent to $33.34.

The KBW bank index added 0.6 per cent. The Dow Jones industrial average was up 47.53 points, or 0.37 per cent, at 12,848.76. The Standard Poors 500 Index was up 6.01 points, or 0.45 per cent, at 1,348.65. The Nasdaq was up 18.03 points, or 0.62 per cent, at 2,921.91.

The benchmark SP index traded near the 1,350 level, seen as a resistance point and possible trigger for a pullback after a rally of more than 7 per cent to start the year.

Apple raised the stakes in an intensifying global patent battle with Samsung Electronics by targeting Samsungs latest model using Googles fast growing Android software, a move that may affect other Android phone makers. Apple shares were up 0.8 per cent to $497.30 after climbing to $500 for the first time, while Google rose 1 per cent to $611.98.