EUROPE MARKETS: European Stocks Close At Best Level In 5 Weeks; Spanish Banks Slide
26 Maio 2016 - 02:08PM
Dow Jones News
By Carla Mozee, MarketWatch
Banco Popular tumbles 26% on $2.8 billion rights issue
European stocks logged a modest gain Thursday as energy shares
got a brief boost from Brent crude futures, which extended their
gains to touch the $50-a-barrel level.
Meanwhile, Spanish banks put the pan-European index under
pressure as Banco Popular Español SA plunged.
The Stoxx Europe 600 index gained 0.1% to 348.91. However, the
stock benchmark lost some momentum after oil-and-gas and basic
materials shares slumped into the close, with the oil-and-gas
sector gauge finishing 0.3% lower. Earlier stocks had benefited
from a rise in crude but relinquished those gains as crude futures
retreated.
Still, the Stoxx Europe 600 managed to close at its best level
in 5 weeks after a three straight days of gains, FactSet data
show.
Capping gains Thursday was Banco Popular Español (POP.MC), which
saw its shares tumble 26%. The move came as the Spanish lender said
it is planning a 2.5 billion euros ($2.8 billion) share sale
(http://www.marketwatch.com/story/banco-popular-down-23-on-28-bln-share-sale-news-2016-05-26),
an effort to ease investor concerns about its capital ratio and
souring property loans.
Also in Madrid trade, shares of Banco de Sabadell SA (SAB.MC)
dropped 5%, CaixaBank SA (CABK.MC) lost 4.3%, and Bankia SA
(BKIA.MC) moved down 2.4%. Banco Santander (SAN) gave up 1.9%.
Tumbling bank shares pushed Spain's IBEX 35 0.5% lower to
9,079.20.
On a brighter news, Spanish growth in gross domestic product was
confirmed at 0.8% in the first quarter
(http://www.marketwatch.com/story/spanish-gdp-grows-34-on-year-in-first-quarter-2016-05-26),
and 3.4% year-over-year.
Oil boost: Energy stocks moved up alongside oil prices, as Brent
crude traded above $50 a barrel for the first time since November.
That rise came after U.S. data showed a larger-than-estimated
decline in weekly oil stockpiles. West Texas Intermediate futures
surpassed $50 a barrel but turned slightly negative later as
investors fretted about producers ramping up output.
The retreat in crude capped pushed oil producers lower. Tullow
Oil PLC (TLW.LN) finished down 2%, after trading up by that much
during the session. France's Total SA (TOT) gave up 0.1%. Oil-field
services firm Technip SA (TEC.FR) closed 0.2% lower and Subsea 7 SA
(SUBC.OS) tumbled 5.2%.
"Whether the bullish trend [for oil] still has legs or if an
imminent correction is due remains a wild guess, as speculators
over-exaggerate on the upside as they did recently on the
downside," said Hussein Sayed, FXTM's chief market strategist, in a
note.
"However, the Organization of the Petroleum Exporting
Countries's meeting on June 2 remains as the key risk factor in the
short term as markets are eager to know whether an agreement on a
potential oil freeze will see the light," said Sayed.
See: 5 key issues OPEC must wrestle with at its June meeting
(http://www.marketwatch.com/story/key-issues-opec-must-wrestle-with-at-june-meeting-even-as-oil-nears-50-2016-05-25)
Indexes: Germany's DAX 30 picked up 0.7% at 10,272.71, and
France's CAC 40 rose 0.7% to 4,512.64.
Italy's FTSE MIB rose 0.1% to 18,216.92, while the U.K's FTSE
100 barely finished in positive territory, up less than 0.1% at
6,265.65.
"[D]espite a corrective move on the dollar and further gains on
the oil price, there has been slight tempering of the risk appetite
that has driven some strong moves on equities in recent days," said
Richard Perry, market analyst at Hantec Markets, in a note.
Movers: Daily Mail & General Trust PLC shares (DMGT.LN)
plunged nearly 11% after the publisher cut its operating-margin
target
(http://www.marketwatch.com/story/daily-mail-profit-up-54-cuts-dmg-media-target-2016-05-26)
for its DMG Media unit.
(END) Dow Jones Newswires
May 26, 2016 12:53 ET (16:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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