News Details
22/11/2010 12:00 - Ireland agrees to a bailout by European Union and IMF

On Monday European stocks pared gains as banks reversed an earlier advance and equities in the region’s weakest economies declined. U.S. futures and Asia shares rose.


European shares were higher after Ireland agreed to a bailout by the European Union and International Monetary Fund, although early gains were pared as the market awaits further detail.  The pan-European FTSEurofirst 300 index of top shares was higher, after initially being as high as 1,110.42 earlier.


On Sunday, Ireland agreed to a three-year bailout package by the European Union and the IMF to tackle its banking and budget crisis. The deal is expected to total 80 billion to 90 billion euros.


The banking sector, which initially featured among the best performers turned lower as investors still remained concerned about debt problems in the euro zone periphery.


After early gains, Ireland's ISEQ traded down around 0.2 percent, led by financials including Bank of Ireland, which erased the gains made in the previous session and was down 11.6 percent, and Allied Irish Banks, down 4.4 percent.


Elsewhere in the euro zone periphery, Italy's benchmark FTSE MIB and Spain's IBEX 35 slipped, while Portugal's PSI 20 was up and Greece's ATG was down 1.1 percent.


On the upside, oil stocks featured among the top performers, tracking crude prices higher after the dollar weakened on the Irish bailout news. 


Retail stocks were also in demand, buoyed by Tesco which rose after the world's No.3 stores group reported strong third-quarter trading in most of its Asia markets.


Asian stocks rose, sending the MSCI Asia Pacific Index to a one-week high, as the euro strengthened against the yen after Ireland applied for a bailout to help fund itself and save its banks.  Japan’s Nikkei 225 Stock Average gained 0.9 percent.


This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management, TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000.  Freephone: 80072344. email: Internet address: Valletta Fund Management Limited is licensed by the MFSA.