Tuesday 27 September 2016

European shares rebound and banks rise

Published 11/05/2016 | 02:30

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

European shares rebounded further as investors speculated a sell-off that spurred their worst week since February was overdone, and banks advanced.

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By the close in Dublin, the ISEQ Overall Index was up 1.11pc, or 67.64 points, to end the trading session at 6,166.86.

The leaders on the Dublin market included Ryanair, which increased 2.2pc to €13.12, while building materials group CRH rose 1.6pc to €25.74.

On the other side of the board, the laggards included packing giant Smurfit Kappa, which declined 1.3pc to €23.46, while Paddy Power Betfair dropped 1.1pc to €113.40.

Elsewhere, the Stoxx Europe 600 Index added 0.9pc at the close of trading. Speculation that the Federal Reserve will slow its pace of rate increases amid weak US data bolstered shares on Monday, while the euro weakened against the dollar for a fifth straight day after last week reaching its highest level since August. Credit Suisse Group climbed 5pc after posting a smaller-than-estimated loss. Greek lenders rose on optimism the country will reach a deal on debt relief.

Carmakers also climbed, buoyed by an increase in China's monthly passenger-vehicle sales.

Volkswagen and Peugeot Citroen gained at least 3.7pc.

"People are slightly less risk-averse now than they were end of April," said Michael Hewson, a London-based market analyst at CMC Markets.

"Credit Suisse earnings weren't great, but they were better than the worst of expectations. Still, the optimism is a little premature. Economic data hasn't been very convincing."

The Stoxx 600 is rising this week after falling 5.4pc from an April 20 peak.

Additional reporting by Bloomberg

Irish Independent

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