Thursday 27 October 2016

European stocks rise for a third day


Published 12/07/2016 | 02:30

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters

European equities extended a rebound into a third day as concern eased about global economic prospects in the aftermath of the Brexit vote.

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By the close in Dublin, the ISEQ Overall Index was up 1.94pc, or 108.51 points, to end the trading session at 5,688.93.

The leaders on the Dublin market included speciality baker Aryzta, which increased 3.1pc to €34.25, while Paddy Power rose 3pc to €99.18.

On the other side of the board, the laggards included shipping and transport group Irish Continental, which slipped 2.7pc to €4.35, while Cpl Resources fell 1.6pc to €4.90.

Elsewhere, the Stoxx Europe 600 Index closed 1.6pc higher, with all 19 industry groups up. The UK's FTSE 100 Index entered a bull market after yesterday's rise of 1.4pc took its gains since a February low to 21pc. Stocks extended an advance after Andrea Leadsom withdrew her candidacy and cleared the way for Home Secretary Theresa May, who is set to succeed David Cameron as the next prime minister.

Commodity producers led the advance yesterday, with data showing China's factory-gate deflation eased for a sixth straight month. Investor outlook for the US economy improved after Friday's report showing a jump in payrolls, while in Japan, Prime Minister Shinzo Abe's ruling coalition won an election on Sunday, giving him a fresh mandate to unleash stimulus measures.

"We had good news globally," said Christian Gattiker, head of research at Julius Baer Group in Zurich.

"A lot of things are now meeting a very cautious European investor and make life not easy, but less threatening than just a week or two weeks ago."

Equities are rebounding after sliding early last week.

Irish Independent

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