Irish and European markets rally again
Published 16/02/2016 | 02:30
The optimism that swept through European equities entered a second day yesterday as lenders and carmakers climbed further, while investors bet on additional central-bank stimulus.
The Stoxx Europe 600 Index rose 3pc, taking its two-day gain to 6pc. Italian and Greek lenders led a bank rally, while Europe's automakers advanced the most since August, helped by a weakening euro. Miners are close to a 20pc rebound from their January low.
European equities are benefiting from a relief rally after reaching their lowest prices since 2013, while speculation for further stimulus is also boosting sentiment.
President Mario Draghi said the ECB will act if market turmoil threatens the region's recovery, and People's Bank of China Governor Zhou Xiaochuan voiced support for the yuan. Even as data showed a slide in Chinese exports in January and an even bigger tumble in imports, the Shanghai Composite Index fell just 0.6pc after reopening following a week-long holiday.
"It's a catch-up for the European sector that had been crushed since the start of the year," said John Plassard, senior equity-sales trader at Mirabaud Securities in Geneva.
"The Chinese market didn't react as bad as we feared, and with the weak export data there is some big hope that the central banks will react quite fast."
In Dublin European trends were mirrored as the Irish index of Irish shares closed up almost 2.9pc at 5954.69. Lenders Permanent TSB and Bank of Ireland - heavily hit so far this year - rose 3.6pc and 2.3pc respectively.
Kerry Group, Ryanair and CRH each rose more than 3pc. Ormonde Mining was the biggest loser, falling 10.5pc.
Additional reporting by Bloomberg