Fed revives European stock rally; EDF sinks

jueves 19 de junio de 2014 10:37 GYT
 

* FTSEurofirst 300 up 0.8 pct, Euro STOXX 50 up 1.3 pct

* EDF's plunge takes 5.8 bln euros off its market value

* Peugeot's short-covering rally continues

By Blaise Robinson

PARIS, June 19 (Reuters) - European stocks rallied on Thursday, with one blue-chip index near a six-year high, after the U.S. Federal Reserve signalled that over the long run interest rates would be lower than it had previously indicated.

Bucking the trend, shares in French utility EDF sank as much as 12 percent after Energy Minister Segolene Royal said a five percent tariff increase scheduled for Aug. 1 would not be applied.

The drop - EDF's sharpest one-day slide since its market listing in 2005 - wiped out 5.8 billion euros ($7.9 billion) in market value - nearly the price of the latest-generation nuclear reactor EDF is building in Flamanville, France.

"The market is edgy because these comments are considered as inconsistent with communication to date and undermine the confidence in the regulatory visibility on EDF, which should be entitled to cover its costs," Societe Generale analyst Vincent Ayral said.

At 1405 GMT, the FTSEurofirst 300 index of top European shares was up 0.8 percent at 1,397.81 points. The euro zone's blue-chip Euro STOXX 50 index had risen 1.3 percent to 3,319.46 points, a level not seen since mid-2008.   Continuación...