European shares rise though Iseq slips

European shares rose today, led by the banking sector as Barclays posted stronger than expected
results, while commodity stocks tracked metal and crude prices higher as the dollar weakened.

By 1138 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.5 per cent at 996.52 points. The index is down 4.7 per cent this year after gaining around 26 per cent in 2009.

"Equities are being supported by the banking sector in the wake of Barclays," said Jeremy Batstone-Carr, head of research at Charles Stanley. "But, I do not believe Greece is out of the woods ... despite Europe being in positive territory it is a major problem that has not gone away."

Banks added the most points to the index. Barclays soared 6.4 per cent after it said it had started the year well after beating expectations, with 2009 profits of over £11.6 billion ($18.18 billion).

HSBC, Lloyds Banking Group Deutsche Bank and Credit Suisse rose 1.8 to 5 per cent. Energy stocks were in demand as crude gained 1 per cent. Cairn Energy, BP, Royal Dutch Shell and Total were up 0.5 to 1.4 percent.

Across Europe, the FTSE 100 was up 0.9 per cent, Germany's DAX rose 0.8 per cent while France's CAC 40 gained 0.6 per cent.

In Dublin the ISEQ was higher this morning in line with European equity markets, but there was a sell-off towards lunchtime. At 12.20 pm the ISEQ was down 1.72 points at 2,860.99.

Dublin traders noted that it was again a very quiet morning with little stock-specific news-flow.

Financial stocks made advances this morning in line with their European counterparts. AIB added 3.2 per cent to €1.09 by 12.25, Bank of Ireland was up just under 2 per cent at €1.24 while Irish Life & Permanent gained 1.7 per cent to €2.68.

Ryanair, the second largest constituent on the ISEQ lost just over 1 per cent to €3.35.

Additional Reporting: Reuters