#zimbabwe European shares stabilise ift.tt/1yS6UcA PARIS — European stocks rose in a technical bounce yesterday after sliding 3 percent over two days, although energy stocks dropped again as Brent crude fell toward $65 a barrel. Greek shares featured among the top losers, with Athens’ benchmark ATG shares index losing 1.5 percent, adding to a 13 percent slump on Tuesday on mounting worries over the country’s political situation. Investors have been rattled by a decision by the Greek government to bring forward to next week a presidential vote that will force nearly two dozen independent lawmakers to decide whether to side with Prime Minister Antonis Samaras’ pro-bailout cabinet or with leftist radicals who have vowed to tear up the bailout. If Samaras fails to secure victory for his presidential candidate, snap national elections could be called which the leftist Syriza party – a fierce opponent of Greece’s bailout deal with the European Union and IMF — would likely win. “Uncertainty in Greece over this vote is fuelling worries of a political gridlock. That said, it’s excessive to think that this is a systemic risk, with the European Central Bank about to step up its asset-purchase programme,” Barclays France director Franklin Pichard said. Just after lunch the FTSEurofirst 300 index of top European shares was up 0.4 percent at 1 368.56 points, in what traders said was a technical rebound after their 3 percent drop this week. Energy shares fell again along with Brent crude prices. Fugro was down 6.3 percent, Seadrill fell 1.5 percent and Royal Dutch Shell shed 0.8 percent. The sharp drop in crude prices since June has forced a number of oil services companies, including Seadrill, to scrap dividends as oil majors accelerate cost-cutting efforts. However, many fund managers and analysts think lower oil prices will be positive overall for the equity market. “This is a change in paradigm in terms of energy prices with implications on economic growth and investments. The impact on countries that are net importers and the ones that are net exporters will be quite different,” said Jean Boivin, deputy chief investment strategist at the BlackRock Investment Institute, who has a positive bias on European equities. — Reuters. ift.tt/eA8V8J
Posted on: Thu, 11 Dec 2014 01:35:56 +0000
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