Friday 9 December 2016

Carmakers help boost Europe's stocks

Published 09/10/2015 | 02:30

Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters
Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters

On a day when Europe's equity benchmark swung between gains and losses at least 25 times, an advance in carmakers helped it close higher yesterday.

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Car-related shares posted the best performance of the 19 industry groups on the Stoxx Europe 600 Index, rising for a fourth day.

Daimler added 1.2pc. Fiat Chrysler Automobiles rose 3.9pc after reaching a tentative agreement with the United Auto Workers union in the US to avert a strike.

Credit Suisse Group AG led banks lower, sliding 3.6pc after the 'Financial Times' reported that the Swiss lender is preparing a substantial capital raising plan.

By the close in Dublin, the ISEQ Overall Index was little changed, slipping just 0.1pc, or six points, to 6,174.79.

The leaders on the Dublin index included insurance group FBD, which closed up 2.1pc to €6.79 a day after the company confirmed Fiona Muldoon had been appointed as the insurer's chief executive.

Insulation group Kingspan increased 1.2pc to €22.12. On the other side of the board, the laggards included speciality baker Aryzta, which fell 1.7pc to €41.32, while Glanbia fell 0.5pc to €16.17.

"There's a certain recovery after the selloff that we've seen in the sector after the 'diesel-gate' which sent the shares down," said Marc-Rene Tonn, a Hamburg-based analyst with Warburg Research. "People are looking at value in the sector again."

The Stoxx 600 added 0.2pc to 361.61 at the close of trading, after earlier rising as much as 0.3pc and falling 0.6pc.

The gauge also struggled to sustain an intraday advance yesterday, after rallying the previous two sessions.

Investors were awaiting company earnings announcements and minutes of the Federal Reserve's September meeting for further cues on corporate and economic health.

(Additional reporting by Bloomberg)

Irish Independent

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