Allied Irish Banks off 6% amid cash-injection reports
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — European stock markets were trading mostly higher amid thin volumes ahead of the Christmas break, while shares of Allied Irish Banks PLC plunged on expectations of a major government cash injection.
The Stoxx Europe 600 index (ST:STOXX600 281.56, +0.11, +0.04%) rose 0.1% to 281.65, after closing the prior session up 0.1%.
Markets looked set to mark a fourth-winning session, which will be the last full trading session for Europe ahead of the Christmas holiday.
Many European markets will be closed on Friday, with London markets closing at midday.
U.S. markets will not be open on Friday.
“On balance, U.S. economic data [are] likely to set the tone once again, with a hefty dollop of releases on tap in the afternoon,” said Ilya Spivak, currency strategist at Daily FX.
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“Also of note, liquidity looks notably thinner ahead of the approaching Christmas holiday; this seemed to account for the unusual volatility noted in Asian trade and more of the same could certainly materialize before the U.S. set of scheduled event risk begins to cross the wires,” he said in emailed comments.
Shares of AIB (AIB 1.09, -0.06, -5.22%) fell 6.8% after media reports said the Irish government was planning to ask a court in Ireland to approve a €3.7 billion ($5 billion) cash injection. The government, which already holds a 19% stake, would then hold more than 90% of the bank.
The announcement could come as soon as Thursday, said the Irish Times, which added that the government may seek to de-list shares.
“At this stage, the ultimate fate of existing shareholders remains uncertain,” said analysts at Davy Research in a note on Thursday.
The Ireland ISEQ index (XX:IEOP 2,877, -8.44, -0.29%) rose 0.04% to 2,886.64.
In London, the Royal Bank of Scotland Group PLC (RBS 12.59, +0.10, +0.80%) (UK:RBS 41.03, +0.34, +0.84%) rose 1.3%, helping the FTSE 100 index (UK:UKX 5,990, +6.17, +0.10%) edge closer to the 6,000 mark. The index rose 0.01% to 5,984.53.
BP PLC (UK:BP. 474.90, +4.90, +1.04%) (BP 43.61, +0.07, +0.16%) rose 0.8% after crude oil settled above $90 a barrel for the first time since October 2008 in the U.S. on Wednesday, lifted by hopes over the global economy.
Crude oil for February delivery was last up 1 cent to $90.49.
Shares of chip group ARM Holdings PLC (UK:ARM 418.70, -21.60, -4.91%) (ARMH 20.43, +0.65, +3.29%) fell 1.6%, giving back some of the prior session’s strong gains.
The French CAC 40 index (FR:PX1 3,912, -7.35, -0.19%) fell 0.2% to 3,913.18, with Alcatel-Lucent SA (FR:ALU 2.21, +0.04, +1.80%) (FR:ALU 2.21, +0.04, +1.80%) up 1.6% and Air Liquide SA (FR:AI 96.70, -1.17, -1.20%) down 1.4%.
In Germany, the DAX 30 index (DX:DAX 7,073, +5.13, +0.07%) rose 0.04% to 7,070.82, with shares of retailer Metro AG (DE:MEO 54.82, +0.52, +0.96%) up 0.7%.
Markets will be keeping an eye out for a heavy schedule of U.S. data, including weekly jobless claims and November consumer spending, both due at 8:30 a.m. Eastern time.
UMich consumer sentiment for December will be released around 10 a.m. Eastern.
Data on November new-home sales are due at 10 a.m. Eastern.
