Thursday 29 September 2016

European stocks gain after ECB slide

Paul O'Donoghue

Published 08/12/2015 | 02:30

Traders work at their screens in front of the German share price index, DAX board, at the stock exchange in Frankfurt. Photo: Reuters
Traders work at their screens in front of the German share price index, DAX board, at the stock exchange in Frankfurt. Photo: Reuters

European stocks advanced after their worst week since August as investors considered the European Central Bank-induced slide overdone.

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By the close in Dublin the ISEQ Overall Index was up 1.4pc, or 94.8 points, to end the trading session at 6847.8.

The leaders on the Dublin index included mining company Kenmare Resources, up by 66.7pc to 0.01 cents as it announced a potential $100m investment from the sovereign wealth fund of the Sultanate of Oman and the termination of takeover talks with Australian firm Iluka.

Hotel group Dalata was up by 1.6pc to 5.13 while building materials company Kingspan rose 1.7pc to €25.81.

On the other side of the board, the laggards included banking group Permanent TSB, down 1.5pc to €4.48, and packaging giant Smurfit Kappa, down 1.1pc to €24.90.

Elsewhere, the Stoxx Europe 600 Index closed 0.5pc higher, its biggest increase since November 26. The equity benchmark pared earlier gains of as much as 1.6pc as a slide in oil prices dragged energy firms lower. Germany's DAX Index posted the best performance among western-European markets as carmakers jumped, recouping 1.3pc after last week's 4.8pc slide. France's CAC 40 Index added 0.9pc.

"It's a rebound, everybody thought the news from the ECB was disappointing, the markets expected much more but the reaction was overdone," said Soeren Steinert, associate director for equities trading at Quoniam Asset Management in Frankfurt.

The Stoxx 600 is up 9.8pc from its September low, after having risen as much as 14pc on November 30 amid expectations for more ECB support and as investors accept the likelihood of higher US rates.

(Additional reporting by Bloomberg)

Irish Independent

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