Europe: Shares inch up as trade war concerns ease

[MILAN] European equities rose slightly in early trading on Monday as easing trade war worries further boosted the dollar supporting exporters, while budget airline Ryanair was weighed down by a disappointing outlook.

The pan-European STOXX 600 index rose 0.3 per cent by 0736 GMT, hovering near its highest level in over 3 months, while the FTSE 100 hit a new record high, as strength in the dollar supported the internationally exposed index.

While activity was reduced by the closure of some markets including Germany for Whit Monday, Italy's FTSE MIB fell 1.7 per cent, weighed down by a number of stocks going ex-dividend including banking heavyweight Intesa Sanpaolo.

FTSE MIB futures however still underperformed, down 0.1 per cent as worries over the creation of a eurosceptic government pushed Italian government bond yields higher.

Ryanair fell as much as 3.1 per cent at the open. The Irish airline posted a record annual profit as it brushed off a rostering mess-up that forced it to cancel flights and sparked a dispute with pilots, but warned profits would fall back in the coming year due to higher costs and no fare growth.

Its shares pared losses and were last down 0.2 per cent.

REUTERS