European stocks rise on BOJ boost as January draws to a close
Published 30/01/2016 | 02:30
European stocks rallied, trimming their worst January drop since 2008, after the Bank of Japan's added stimulus stoked optimism of policy support for global growth.
By the close in Dublin, the ISEQ closed up at its fastest pace so far this year, by 2.07pc, or 128.45 points, to end the trading week at 6,343.24.
The leaders on the Dublin market included Kerry Group, which rose 2.2pc to €75.30, while insulation group Kingspan increased 4.3pc to €23.74. On the other side of the board, the laggards included Dalata Hotel Group, which dropped 1pc to €4.90, while exploration group Providence decreased 1.3pc to 15 cents.
Elsewhere, the Stoxx Europe 600 Index rose 2.2pc at the close, after the Bank of Japan (BOJ) announced a negative interest rate.
In the US, a report showed slower economic growth last quarter, after Federal Reserve officials said this week they'll watch how global financial developments affect the American outlook. "We were not expecting such a bold move from BOJ so the market is cheering their decision," said Stephane Ekolo, chief European strategist at Market Securities in London.
"As the BOJ has done its move, now the European Central Bank will follow suit. When we look at all the negative news we've had lately, this is a bit of sunshine in the cloudy picture," Ms Ekolo said.
Equities have had a wild ride this year as China's slowdown and an oil rout spurred anxiety about the global economy. After reaching a 15-month low last week, the Stoxx 600 got a boost from Mario Draghi's comments that the European Central Bank may reconsider its policy stance in March.
The benchmark has gained 1.2pc this week, trimming its January losses to 6.4pc.
Lenders in Italy and Spain were among the best Stoxx 600 performers.