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Europe: Cyprus jitters muted by US macro

Anastasia Tretyakova, Junior analyst, Global Markets (Finam)

On Tuesday, March 26 марта, European equities finished the session in positive territory as upbeat US macro data outweighed media reports about the European parliament’s remarks that depositors holding over EUR 100,000 (USD 129,000) in Cypriot banks would have to sustain major losses.

The US housing data encouraged investors the most, with the S&P/Case-Shiller home price index for 20 metropolitan regions showing 8.1% growth over 12 months ending in January, a record annual performance since June 2006, while the median projections called for a 7.9% rise.

At the same time, durable goods orders surged 5.7% in February against the average anticipated upturn of 3.8%. As for the benchmarks, the regional STXE 600 closed 0.2% higher at 293.76. Britain’s FTSE 100, France’s CAC 40 and Germany’s DAX nudged up 0.33%, 0.55% and 0.11%, respectively.

UK retailer William Morrison Supermarkets jumped 3.5% after analysts with Citigroup upgraded its stock to Buy and upped the target price from 280 to 325 pence.

German healthcare and pharmaceutical company Celesio added 4% to its market cap on media reports that the company’s FY financials outpaced its own guidance.

British developer Bellway jumped 2.9% after reporting a 51% upsurge in the company’s net profit for six months through January 31, to GBP 46 mn.

In other news, France’s leading energy supplier Electricite de France (EDF) strengthened 2.4% after being lifted from Neutral to Overweight by analysts at Morgan Stanley.

By 7.35 GMT key regional gauges demonstrated positive dynamics amid investor optimism about gradual recovery of the US economy following robust data on the housing market and durable goods orders released on March 26.

Britain’s June FTSE 100 futures were up 0.33%, France’s April CAC 40 futures were 0.55% higher, while Germany’s June DAX futures were 0.11% higher.