Business Irish

Saturday 10 December 2016

Europeans stocks hit a three-month high

Published 27/11/2015 | 02:30

Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters
Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt. Photo: Reuters

European shares hit three-month highs yesterday, rising in thin trade as expectations grew for aggressive European Central Bank (ECB) action next week.

  • Go To

A solid quarterly report from chipmaker Infineon and a rebound in metal prices also provided support.

The pan-European FTSEurofirst 300 index closed up 0.9pc at 1,516.25 points, its highest level since August.

In Dublin the ISEQ index closed up 1.5pc at 6,811 as big names, including Smurfit Kappa, Ryanair and CRH, all recorded gains.

However, volumes were just 65pc of its 90-day average. Wall Street was closed for the US Thanksgiving holiday.

The euro edged towards seven-month lows against the dollar as investors felt that the ECB would ease policy again in December.

"Expectations surrounding the ECB are running very high and this is driving European markets higher, weakening the euro and helping them do better than US stocks," Cassa Lombarda head of research and investment, Marco Vailati, said.

"I think and hope the ECB will not disappoint but I realise that it won't be that easy."

Infineon climbed 12.9pc after the chipmaker posted higher-than-expected quarterly operating results and promised an increase in revenue for its latest financial year at the high end of analysts' expectations. The bullish update boosted other chipmakers.

Drinks maker Remy Cointreau fell 3pc after reporting a 7.3 pct fall in like-for-like current operating profit in the first half, reflecting soft Chinese demand for its premium cognac.

Auto stocks were also in demand, helped by gains in Volkswagen, which rose 3.5pc.

Reuters

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business