3:00 PM Frankfurt – European markets traded higher to reach a 3-week high led by a surge in commodities and resource sector stocks. UK handed over the Libor rate management to the operator of NYSE Euronext exchanges. LVMH agreed to acquire 80% stake in Loro Piana for 2.5 billion euros.
European markets traded higher tracking gains in New York and Alcoa reported a quarterly loss but held out prospects of an increase in global demand.
In London, FTSE 100 index gained 1% to 6,515.29 and in Frankfurt the DAX index added 110.35 or 1.4% to 8,078.89.
European ministers agreed to release 3 billion euros to Greece but kept up the pressure to implement reforms and demanded 15,000 government job cuts before the release of next tranche of 8 billion euros bailout.
UK handed over the administration of the London interbank offered rate to the operator of the New York Stock Exchange. The London based British Banker’s Association will no longer manage the interbank rate, the reference rate for trillions of dollars of securities.
Barclays, UBS and Royal Bank of Scotland have been fined more than $2.5 billion for interbank rate manipulation and at least 10 other banks are under investigation.
LVMH Moet Hennessy Vuitton SA agreed to pay 2 billion euros for 80% stake in Italian cashmere and leather luxury goods maker Loro Piana SpA.
UK pound declined 0.6% after manufacturing output in May declined 0.8% from April when production fell 0.2%, the Office for National Statistics said in London today.
European market indexes gained between 0.4% and 0.6% following positive earnings outlook from the U.S. based Alcoa.
Stocks in Review
EDF soared 9% after Paris based newspaper Le Parisien said France approve the retail price increase of 5% next month and addition increase by the same amount in August 2014. The newspaper quoted a statement from Energy and Ecology Minister Philippe Martin.
LVMH increased 1.9% to 131.10 euro after it agreed to acquire 80% stake in Italy based Loro Piana SA.
Hikma Pharmaceuticals Plc increased 2.1% to 1,071 pence and extended gains for the second day after jumping 5% on Monday and the company revised higher its sales growth for the year to 17% from 13%.