Business Irish

Friday 28 April 2017

Bourses continue climb after Fed move

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York. Photo: Reuters
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York. Photo: Reuters

Reuters

European stockmarkets rose yesterday following Wednesday's decision by the US Federal Reserve to raise interest rates for the first time in almost a decade.

But gains were curtailed later in the day as continued pressure on oil prices dented energy-related stocks across the globe. Still, the pan-European FTSEurofirst 300 index climbed 1.3pc

"With the confirmation of the Fed rate rise due to a strong US economy, investors took cheer as the decision formalises opinion that the US economy is broadly expanding," said Lorne Baring, managing director of B Capital Wealth Management.

Cyclical sectors such as automobiles, banking and insurance continued to perform well with gains of 1.5pc to 2.8pc, featuring among the top sectoral gainers in Europe.

In Ireland, the ISEQ Overall Index advanced 97.85 points, or 1.47pc yesterday to close at 6,751.34. That's still lower than the 12-month high of 6,921.44 the index reached at the beginning of the month.

Shares on the move included CRH, buoyed by positive sentiment in the US. It rose 2.9pc, or 75 cent, to €26.50.

Insurance group FBD gained 2.8pc to €6.80. Irish Continental was 2.5pc ahead at €5.36. Shares on Paddy Power gained just under 1.6pc to €122.25 as shareholders get ready top vote next week on its planned merger with Betfair.

The UK's FTSE-100 rose 1.2pc, while the Germany's DAX climbed 2.6pc and France's CAC-40 gained 1.3pc.

Casino plunged as much as 20pc after research firm Muddy Waters, founded by short-seller Carson Block, said the French retailer was one of the "most overvalued and misunderstood" companies it had ever come across. Casino said the report contained "grossly erroneous allegations".

Irish Independent

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