March 23, 2016 / 9:50 AM / 4 years ago

European shares lifted by Credit Suisse gains

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)

* Credit Suisse rises on new cost-cutting plans

* Poste Italiane up on dividend pledges

* William Hill slumps after warning of lower profits

* Travel, leisure stocks underperform post-Brussels attacks

By Sudip Kar-Gupta

LONDON, March 23 (Reuters) - European shares rose on Wednesday after a dip in the previous session following deadly attacks in Brussels, with Credit Suisse stock climbing after news of more cost cuts.

The pan-European FTSEurofirst 300 index rose 0.5 percent, while the euro zone’s blue-chip Euro STOXX 50 index advanced 0.6 percent.

Credit Suisse rose 2 percent after it announced 800 million Swiss francs in additional cost cuts and plans to shrink its investment bank further as it pushes ahead with a restructuring plan aimed at revitalising its earnings.

“It is positive that Credit Suisse is taking more action and reducing risk weighted assets in global markets,” RBC Europe analyst, Fiona Swaffield, said.

Also among the gainers, technology group Hexagon rose after Morgan Stanley raised its rating on the stock to “overweight” from “equal weight”.

Among other standout movers, Italy’s post office operator Poste Italiane advanced as its dividend targets pleased investors, but gambling group William Hill slumped 13 percent after warning of lower profits.

William Hill’s woes also weighed on the shares of rival bookmakers such as Ladbrokes and Paddy Power Betfair , which fell 4.6 percent and 2 percent respectively.

European travel and leisure shares also underperformed for a second straight session, as the sector continued to feel the effects of Tuesday’s attacks on Brussels.

The STOXX Europe 600 Travel & Leisure Index fell 0.1 percent, adding to a 1.8 percent decline following the attacks which killed at least 30 people.

Some investors remained cautious about the near-term outlook, with the FTSEurofirst still down about 7 percent since the start of 2016 on concerns about a global economic slowdown.

“We are in a bear market. We pulled up a bit in February and March, but I think the most likely direction for now is down,” ACIES Asset Management hedge fund manager, Andreas Clenow, said.

Today’s European research round-up

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email

Mike Dolan, Markets Editor EMEA. (Editing by Louise Ireland)

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