European Markets Mostly Higher After BES Bailout

By RTT News, 
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(RTTNews.com) - The European markets are trading mostly higher on Monday, after Portugal's central bank Sunday announced a plan to rescue the troubled lender Banco Espirito Santo or BES to protect taxpayers and senior creditors.

In a 4.9 billion euros bailout that will leave junior bondholders with losses, the lender will be split into a "good bank" with the healthy assets and "bad bank" with the riskier ones under a state rescue plan.

Yet, gains on the day were limited amid geopolitical worries and lingering concerns about the European economy.

In economic news, Eurozone producer prices continued to decline in June, but at a slower pace from prior year, Eurostat reported.

Meanwhile, Eurozone investor confidence declined sharply in August as sanctions imposed by the EU on Russia weighed on economic assessment, survey figures from the think-tank Sentix showed.

U.K 's construction activity grew at the fastest pace since 2007, exceeding the consensus estimate, led by increased house building work, results of a survey by the Chartered Institute of Purchasing & Supply and Markit Economics revealed.

The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.70 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.33 percent.

The German DAX is rising 0.33 percent, the French CAC 40 is gaining 0.79 percent and the UK's FTSE 100 is rising 0.48 percent. Switzerland's SMI is declining 0.73 percent.

In Frankfurt, utility E.ON is gaining 2.2 percent and peer RWE is adding 1.5 percent.

Automaker BMW is adding 1.6 percent and Daimler is up 1.1 percent. Adidas is losing around 2 percent. Berenberg cut the stock to ''Sell'' from ''Buy.''

Infineon Technologies and SAP are down around 1 percent each.

In Paris, Axa is gaining 3.1 percent. DZ bank raised the stock to ''Buy" from "Sell."

Renault is up 2.3 percent and Peugeot is climbing 3 percent.

Credit Agricole, BNP Paribas and Societe Generale are rising between 1.9 percent and 1.4 percent.

In London, HSBC is gaining 3 percent, after reporting first-half results.

Intertek is up 1.5 percent. The quality and safety services provider approved a higher interim dividend.

Royal Mail and Ashtead Group are falling 1.7 percent each.

Dutch mail firm PostNL reported increased second-quarter profit, amid revenue growth. The stock is moderately higher.

The Asian stocks closed mostly higher, shrugging off weak cues from the U.S. and European markets Friday, as investors assessed the implications of mixed U.S. jobs data on monetary policy.

In the U.S., futures point to a higher open on Wall Street. In the previous session, the Dow slid 0.4 percent and the S&P 500 shed 0.3 percent to end at two-month closing lows, while the tech-heavy Nasdaq dropped 0.4 percent.

Crude for September delivery is rising $0.23 to $98.11 per barrel, while gold is losing $1.8 to $1293.0 a troy ounce.

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This article appears in: News Headlines

Referenced Stocks: ADDYY , ASHTY , BES , BMW , BNP

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