European Markets End in Positive Territory; Rally for Second Day

Bank stocks once again pull up European indices

Author:: Lisa Botter
Publish date:: May 25, 2016 12:23 PM EDT

European markets were up on Wednesday on optimism about the strength of the U.S. economy and Greece's debt relief package.

In London, the FTSE 100 ended the day at 6,262.85, 0.70% up.

Marks & Spencer lost more than 10% today after the retailer announced an 18.5% drop in full-year pre-tax profit for the fiscal year ended on April 2. CEO Steve Rowe said that growing clothing and home sales is a top priority.

Shareholders will also receive an unexpected special dividend for the first half of 2016/2017.

In Belgium, business confidence worsened in May after the country was dragged down by manufacturing. The indicator compiled by the country's central bank fell to -2.8 in May from -2.4 in April, missing expectations that it would be flat.

AB InBev (BUD) - Get Report received a boost today closing 1.75% up, after the European Commission approved its merger with SABMiller on the condition that it sold its Eastern European business.

In Frankfurt, the Dax closed at 10,205.21 about 1.47% up and in Paris the Cac 40 was up 1.13% closing at 4,481.64.

Unlike Belgium, business sentiment rose in Germany in May. The Ifo index rose to 107.7 in May, up from 106.7 in April.

Banks did well for the second day, with Commerzbank closing 3.67% up and Deutsche Bank gaining 3.44% in Frankfurt.

In London, Royal Bank of Scotland (RBS) - Get Report closed 4.36% up, Standard Chartered gained 3.47% and HSBC was up 2.8%.

And in Paris, Credit Agricole was the biggest gainer of the day, increasing 4.75% and BNP Paribas was up 2.81%.

In Greece, the Athens Stock Exchange General Index closed at 641.80, 0.04% down. The exchange had gained early in the day after eurozone finance ministers and the International Monetary Fund came to a debt-relief agreement that unlocked a $11.5 billion aid payout.

Pharmaceutical company Sanofi (SNY) - Get Report gained 2.53% in Paris after it made a move to replace the entire board of San Francisco-based Medivation (MDVN) . The French company had previously made an unsolicited offer for Medivation worth $9.3 billion in April, which was rejected.