European stocks rise after a five-day rout
Published 16/06/2016 | 02:30
A rally in miners and retailers lifted European stocks after a five-day rout, while traders speculated that the Federal Reserve's latest policy review will offer encouragement to beleaguered markets.
By mid-afternoon in Dublin, the ISEQ Overall Index was up 0.84p, or 50.04 points, to 6,027.25.
The leaders on the Dublin market included packaging giant Smurfit Kappa, which increased 1.7pc to €21.88, while food ingredients company Kerry Group rose 1.2pc to €78.73.
On the other side of the board, the laggards include insurance group FBD, which dropped 1.5pc to €6.40, while hotels group Dalata slipped 1.1pc to €4.35.
Elsewhere, Glencore climbed 6.5pc, helping commodity producers post the biggest increase of the 19 industry groups on the Stoxx Europe 600 Index, as metals advanced.
Inditex pushed retailers ahead with a 5.3pc rise after the maker of Zara clothing reported better-than-expected first-quarter profit.
Banks in peripheral nations led gains on a gauge of lenders.
The Stoxx 600added 1.3pc to 324.78 at 3pm in London, rebounding from its lowest level in almost four months.
The Fed was expected to keep borrowing costs unchanged, although chair Janet Yellen's comments at a press briefing after the announcement will be scrutinised for clues on the likely timing of the next increase.
Futures signal the chances of a move by July have tumbled to about 16pc from 53pc at the start of this month, damped by weak US payrolls data and turbulence in global financial markets.
"We might have a rebound today but there's just too much uncertainty," said Teis Knuthsen, chief investment officer at Saxo Bank's private-banking unit in Hellerup, Denmark.
"Janet Yellen has been the fairy godmother of the bull market on a number of occasions. I'm looking for her to repeat that performance. My hunch is that she'll try to spin a fairly constructive message."
After climbing 16pc from a February low to an April 20 high, the Stoxx 600 has struggled to maintain momentum amid lacklustre earnings, scepticism over the European Central Bank's (ECB) stimulus programme and worries over global growth.
The benchmark yesterday capped its worst five-day plunge since February as Britain's largest-selling newspaper backed a so-called Brexit and five polls put the UK's 'leave' campaign ahead of 'remain', before the June 23 referendum on European Union membership.