European stocks rise on Fed speculation
Published 16/10/2015 | 02:30
European stocks snapped a three-day losing streak amid some better-than-expected earnings reports and investor speculation that poor economic data from around the world will persuade the Federal Reserve to put off raising rates for longer.
By the close in Dublin, the ISEQ Overall Index was up 1.6pc, or 98.18 points, to end the trading day at 6,234.38.
The leaders on the Dublin market included insulation group Kingspan, which rose 3.1pc to €21.65, while building materials firm CRH increased 1.5pc to €23.86.
On the other side of the board, the laggards included bookmakers Paddy Power, which slipped 0.2pc to €98, while Malin Corporation dropped 0.7pc to €10.74.
Elsewhere, the Stoxx Europe 600 Index rose 1.5pc to 360.99 at the close of trading. Shares slid on Wednesday after disappointing Chinese inflation data. Concern over the strength of the world's second-biggest economy, uncertainty over Fed policy and the scandal at Volkswagen helped drag the Stoxx 600 down 13pc from its April high, prompting at least two-thirds of equity strategists tracked by Bloomberg to cut their estimates for where the gauge will end this year to 395 from 422 in July.
"What bad news there is I think people are getting more confident that it can be dealt with by leaving policy looser for longer," said Ben Kumar, an investment manager at Seven Investment Management in London.
"There are some decent earnings reports coming through; there are some bad ones too, but that's OK."
Disappointing US retail sales data yesterday, combined with a better-than-forecast weekly jobless report, offered further evidence of the economy's patchy recovery. Investors now don't see better-than-even odds of interest rates increasing until March next year. The chance of lift-off this month has fallen to 6pc.