Dublin misses out as European shares break losing streak
European shares rose in early trade yesterday, breaking a four-day losing streak after markets had sold off globally on the back of concerns about the effectiveness of central bank policy.
Dublin bucked the trend, with Irish shares down very slightly.
The STOXX 600 index of euro-area shares was up 0.5pc, rebounding from one-month lows. Equities have been under pressure after the European Central Bank said last week an extension of its stimulus programme had not been discussed and amid speculation worries about a rate rise from the US Federal Reserve next week.
Shares in German drug and crop chemical maker Bayer rose after it clinched a $66bn takeover of US seeds company Monsanto yesterday, ending months of wrangling with a third sweetened offer that marks the largest all-cash deal on record.
The $128-a-share deal, up from Bayer's previous offer of $127.50 a share, has emerged as the signature deal in a consolidation race that has roiled the agribusiness sector in recent years.
Mark Dampier, head of research at Hargreaves Lansdown, said he expected markets to be nervous ahead of key meetings from the Fed and the Bank of Japan later in September.
"My view on the market is that it's going to be pretty flat, possibly down, over the next few days while they wait for yet another... macro-statistical event to come out," he said.
European stocks' recovery was led by a rise in basic resources shares, which were up 2.8pc, benefiting from a rise in copper prices which firmed on the back of positive US and Chinese economic data.
Swiss business support services firm DKSH was the top gainer, up 5.6pc at more than a one-year high on the back of an upgrade from Credit Suisse to "outperform".
Luxury stocks, however, came under pressure with France's Hermes falling 7pc after saying that it would no longer provide an annual sales growth forecast starting next year due to the uncertain trading environment.
Swiss watchmaker Richemont also fell after a disappointing update, down 3.7pc, with shares in Swatch Group pulled lower as well.
Britain's Ocado extended its losses from the previous session, down 6.6pc after BNP Paribas cut its rating on the stock to "underperform". Ocado fell on Tuesday after warning on margin pressure in its third-quarter update.
In Dublin, startup drug firm Amryt Pharmaceutic fell 8pc to 23 cents a share after financial results on Tuesday. While Ormonde mining was the big gainer, surging 18pc.