Business Irish

Thursday 29 September 2016

European shares rise the most in a month despite Fed concerns

Published 21/05/2016 | 02:30

Traders work on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange

European shares rose the most in a month as investors shrugged off concerns that a Federal Reserve rate increase as early as next month will derail the US economic recovery.

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By the close in Dublin, the ISEQ Overall Index was up 1.1pc, or 68.61 points, to end the trading day at 6,229.15.

The leaders on the Dublin market included hotelier Dalata, which rose 3.7pc to €4.81, while Independent News & Media, the parent company of this newspaper, increased 2.6pc to 16 cents. On the other side of the board, the laggards included Glanbia, which dropped 0.8pc to €15.77, while Mincon Group lost 3.9pc to 74 cents.

Elsewhere, the Stoxx 600 increased 1.2pc to 338.01 at the close of trading, for a weekly gain of 1pc.

Shares slid the most in two weeks on Thursday as commodities tumbled and minutes from the Fed's last meeting showed officials are ready to raise interest rates next month if the economic pickup stays supportive.

Novartis climbed 1.8pc after the UK affirmed its backing of a cancer treatment, helping a measure of health companies post the best performance of the 19 industry groups on the Stoxx Europe 600 Index.

UniCredit added 7.6pc, leading gains among banks, after sources said it may sell a stake in its online broker FinecoBank and review holdings in Poland and Turkey to raise capital.

"After the losses of the last few days, bargain hunters are re-entering the market," said Thorsten Engelmann, a Frankfurt-based trader at Equinet Bank.

"The market seems to be able to deal with the Fed raising rates, and next week should be quieter now that the earnings season is over."

A European stock rally from a February low has stumbled since reaching a three-month high in April.

Additional reporting by Bloomberg

Irish Independent

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