Business Irish

Wednesday 7 December 2016

European stocks erase weekly losses

Bloomberg/Colm Kelpie

Published 28/08/2015 | 02:30

FBD's Cathal O Caoimh, left, who has replaced Andrew Langford as interim chief
FBD's Cathal O Caoimh, left, who has replaced Andrew Langford as interim chief

Confidence is returning to the market, and European stocks have erased their weekly losses.

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The Stoxx Europe 600 Index climbed 3.5pc yesterday, extending the rally after data showed the US economy grew more than previously forecast. The gauge is now up 0.3pc for the week.

All industry groups advanced, mirroring increases in commodities, while benchmark measures in the UK, Germany and France rallied more than 3pc.

By the close in Dublin, the ISEQ Overall Index was up 3.54pc, or 216.62 points, to end the trading session at 6,332.15.

The leaders on the Dublin market included FBD, which rose 10.9pc to €5.85 a day after it was revealed that the insurer had appointed former finance director Cathal O'Caoimh as its interim finance chief.

Packaging giant Smurfit Kappa increased 5.8pc to €26.

On the other side of the board, the laggards included IFG group, which slipped 1.7pc to €1.96, while Providence Resources fell 6.6pc to 20 cents.

Earlier in the day, the Stoxx 600 increased its gain after people familiar with the matter said China's government intervened to boost the equity market.

"The US is leading the way," said Peter Braendle of Zuercher Kantonalbank in Zurich.

"This decline created the opportunities for some good prices in Europe. The economic situation is improving, which is helping the companies and the results we are getting are OK."

Some European companies were boosted by financial reports. Bouygues rose 5pc after the French conglomerate raised its 2015 profit target for its phone operations.

Fresenius added 6.2pc after Germany's largest medical-supplies provider said it expects to increase its dividend by at least 20pc this year.

Irish Independent

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