by Peter Charalambous
June 14, 2008
Driven by the increase in retail sales, European stocks have increased as both inflationary threats seem to have eased, as well as consumer confidence in the US back on the rise. As a result, HBOS Plc, UBS AG and Commerzbank AG increased despite the huge losses seen by housebuilders.
Europe’s Stoxx 600 added 0.4 percent to 305.17 even though credit-related losses approached $400 billion, record oil prices and rising inflation have affected earnings and the index itself.
Earlier this week, HBOS shareholders were targeted with a rights issue as the bank is asking investors for extra cash and the bank’s recovery has lifted the Royal Bank of Scotland which has increased by 3.28 percent to 236.5 pence.
The FTSE 100 shares index was faltering as falling energy stocks are affected by oil and metals prices which has seen BP lose 1.60 percent to 584.75 pence whilst Royal Dutch Shell declined by 1.40 percent to 2.039 pence.
US stocks held their gains, as Yahoo said its talks with Microsoft on a potential takeover have seemingly stalled however Japanese share prices closed up 0.61 percent on yesterday due to the increase of the strength of the dollar.
