BAY adds 7.24 percent as European airlines gain

European equities markets were higher Friday, with the FTSE Eurofirst 300 adding 2.19 percent to close at 965.61, its highest closing level since last November and almost 50 percent higher than it was when it hit a record low in March.

The gains came on improved sentiment after the National Association of Realtors said that US existing home sales were up 7.2 percent in July, the biggest jump in sales from one month to the next in 10 years.

The increase in home sales was taken as a sign that the economy is about to recover from the recession.

In London, the FTSE 100 was up 1.98 percent to 4,850.89 while the FTSE 250 added 1.73 percent to 8,678.83.

British Airways (LSE: BAY; NYSE: BAB) led gainers on the 100 as it gained 7.24 percent while over on the 250, online property search Rightmove (LSE: RMV) turned in the best performance, adding 18.7 percent.

Insurers were higher on the 100 as Legal & General (LSE: LGEN) gained 5.56 percent, Aviva (LSE: AV) was up 5.5 percent and Friends Provident Group (LSE: FP) added 4.31 percent.

Software company Sage Group (LSE: SGE) was the biggest loser on the 100, falling 2.05 percent.

There were no decliners on the Dax, which added 2.86 percent to 5,462.74 or the CAC-40, which was up 3.15 percent to 3,615.81.

Engineering conglomerate Alstom (Euronext: ALO) led gains on the CAC-40 as it added 6.23 percent while utility Eon (FWB: EOA; LSE: EON; NYSE: EON) turned in the best performance on the Dax with a gain of 5.54 percent.

Elsewhere in the utilities sector, RWE (FWB: RWE) was up 4.56 percent while GDF Suez (Euronext: GSZ, GSZB) gained 4.5 percent.

Airlines were up on the session as Lufthansa (FWB: LHA) added 3.86 percent and Air France-KLM (Euronext: AF; NYSE: AKH) gained 3.7 percent.

Spain’s IBEX was up 2.46 percent to 11,161 to end the week.

Markets in the Asia-Pacific region were mixed, with Tokyo’s markets down as exporters were hurt by a stronger yen.

Carmakers were especially vulnerable after the US announced that it will end its “cash for clunkers” rebate program on Monday, which had boosted car sales in the US for the month the program was in place.

In addition, investors were hesitant before Japan’s national elections, set for Sunday, 30 August, in which the opposition Democratic Party looks to be headed for victory against the ruling Liberal Democratic Party.

The Nikkei 225 was down 1.4 percent to 10,238.2 in Tokyo, while the Topix index fell 1.17 percent to 947.34 and the Mothers market dropped 0.35 percent to 449.17.

Among automobile manufacturers, Nissan Motor (TYO: 7201) was down 5.2 percent while Honda Motor (TYO: 7267) fell 4.1 percent and Toyota Motor (TYO: 7203) dropped 2.9 percent as investors feared that the end of the US incentive program would push auto sales there lower.

Also seeing declines was the Straits Times Index, which was 0.57 percent lower to 2,544.86 while at the same time the Hang Seng fell 0.64 percent to 20,199.02 and the Taiex was down 1.16 percent to 6,654.8.

In Australia, the Sydney Ordinaries dropped 1.95 percent to 4,305.7 while the S&P/ASX200 was down 1.99 percent to 4,290.6.

Among markets seeing gains, the Kospi was up 0.29 percent to 1,580.98 while the Sensex added 1.52 percent to 15,240.83 and the Shanghai Composite gained 1.69 percent to 2,960.77.

At just after 1 p.m. in New York, the Dow Jones Industrial Average was up 1.45 percent to 9,485.93 while the Nasdaq Composite had added 1.25 percent to 2,014.17 and the S&P 500 was 1.58 percent higher to 1,023.32.

The gains came on the news concerning July’s gains in existing home sales and after Federal Reserve Chairman Ben Bernanke told a Fed conference in Wyoming that the economy will likely begin to grow again soon, although he warned that it is still difficult for businesses and consumers to borrow money.

Story link: BAY adds 7.24 percent as European airlines gain