Lakehouse Share News (LAKE)

LONDON (Alliance News) - London stocks ended higher Wednesday, as European markets were given a boost after reports said Greece and its European creditors started crafting a technical-level agreement.

The FTSE 100 ended up 1.2% at 7,033.33, jumping above the 7,000 mark following the report from Greece, as well as other European major indices. The CAC 40 in Paris closed up 2.0% and the DAX 30 in Frankfurt finished up 1.3%.

Meanwhile, the FTSE 250 ended up 0.8% at 18,237.47, while the AIM All-Share closed up 0.1% at 765.9.

Greece and its creditors started to draft a technical-level agreement, Reuters reported citing a government official. "At the Brussels Group (of credit negotiators) today procedures to draw up staff-level agreement are beginning," said the official.

The news agency reported that the official said the deal would avoid wage and pension cuts, include reform of value-added taxes and a lower target for a primary surplus in the first year.

Bloomberg also reported that the Mediterranean country and creditors began "crafting a staff level accord", citing an official.

Before the agreement reports came out, European and US officials on Wednesday urged Greece to reach a deal to unlock its bailout funds as the country and its creditors met for negotiations in Brussels.

Speaking at a press conference, European Commission Vice President Valdis Dombrovskis said "there is a need to reach this agreement as quickly as possible". Meanwhile, US Treasury Secretary Jacob Lew also called on for the rapid resolution of the Greek crisis, warning that it could get out of control.

Greece is due to make a EUR300 million payment to the International Monetary Fund next week.

On the London Stock Exchange, CRH was the best performer in the FTSE 100, up 3.4% after the Irish building materials company late Tuesday said Lafarge and Holcim have accepted its offer to buy assets from them for EUR6.5 billion including debt and are now legally bound to the terms of the acquisition.

Imperial Tobacco was, up 2.3%, after the US Federal Trade Commission approved the acquisition of Lorillard by Reynolds American. As part of that US merger, Imperial Tobacco previously had agreed to acquire from the pair a portfolio of US cigarette brands, e-cigarette brand blu, and Lorillard's cigarette factory and national sales force.

International Consolidated Airlines Group closed up 3.0% as Irish flag carrier Aer Lingus Group late Tuesday said it has moved a step closer to being taken over by IAG in a EUR1.4 billion deal, after the Irish government gave its backing to the deal. Along with securing regulatory approval in Europe and the UK, the offer remains conditional on securing the approval of both the Irish government - the Irish Parliament the Dáil still has to vote on the approval - and budget carrier Ryanair Holdings, both of which hold substantial stakes in Aer Lingus, whose shares are up 1.9%. Ryanair shares are up 2.4%.

Weir Group was down 0.7% after Deutsche Bank downgraded the oil and gas support service company to Hold from Buy, saying a recovery in US rig count will not see an immediate surge in pressure pumping demand due to incomplete wells.

In the FTSE 250, Lloyds of London insurers Beazley, up 6.9% to 302.5p, and Hiscox, up 3.5% to 861.00p, led the mid-cap index after JP Morgan raised them both to Overweight from Neutral, lifting Beazley's price target to 308 pence from 255p and Hiscox's to 950p from 801p.

Synergy Health was down 16%. Spreadex analyst Connor Cambpell said "the cause of this calamity has been worries that the long-rumoured takeover of Synergy by the USA’s Steris Corporation, worth around USD1.9 billion in cash and stock, could be blocked by the US Federal Trade Commission."

Brewin Dolphin Holdings shares were down 11% even though it reported higher first-half pretax profit and discretionary funds under management. However, some analysts said they will be cautious as the company enters the final stages of its transformation programme launched in 2012, with Panmure Gordon retaining a Sell stance, and Numis downgrading the company to Hold from Add.

De La Rue ended down 9% after the banknote printer reported a drop in pretax profit in its recently completed financial year, as margins were squeezed by pricing pressure and the company achieved lowers levels of new business than expected in its identity systems and security products. Weakness in the euro has put further pressure on its profitability in the new financial year, the company said.

Outside stocks, Britain's newly-elected Conservative majority government set out on Wednesday in the Queen's Speech plans for an in-out referendum on the UK's European Union membership, along with tax freeze pledges, an extension of the Right to Buy scheme, and the devolution of powers to Scotland.

When the European stock markets closed, Wall Street was higher, with the DJIA trading up 0.6%, the S&P 500 up 0.6% and the Nasdaq Composite up 0.9%.

In the corporate calendar Thursday, Kingfisher issues a first-quarter trading update, while Tate & Lyle, Paypoint, Gable Holdings, Porta Communications and Lakehouse release full year results. Meanwhile, IG Group Holdings issues a trading statement, while Avocet Mining publishes first-quarter results.

In the economic calendar, German Import Price Index is due at 0700 BST, while Italy GDP is at 0900 BST. UK GDP is due at 0930 BST, while eurozone consumer confidence is at 1000 BST. In the US, initial jobless claims is due at 1330 BST, while the EIA crude oil stocks is at 1600 BST.

By Daniel Ruiz; danielruiz@alliancenews.com

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