Monday 24 October 2016

Irish and European stocks rebound

Published 06/01/2016 | 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

The ISEQ index of Irish shares rose slightly yesterday as markets in Europe rebounded from Monday's turmoil.

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The ISEQ closed up just less than half of one percent 6,736.10, with a 1.5pc rise in the stock of heavily weighted CRH a key factor.

The cement maker's shares had declined more than 2.5pc in the previous day's turbulent trading. Yesterday it was named one of Davy's top picks for 2016.

Petrol station company Applegreen was the chief laggard, down 2.7pc.

In Europe, stocks advanced after the worst start to a year on Monday.

Commodity producers posted the biggest gains among Stoxx Europe 600 Index groups. Glencore and ArcelorMittal added at least 3.5pc, helping send the regional benchmark up 0.6pc at the close of trading. It rallied as much as 1.1 percent in the first ten minutes of trading, and then fell back by 0.5 percent in intraday trading.

A gauge of miners advanced 1.8pc yesterday, rebounding from their biggest drop in almost four weeks.

"It's just buying the dip," said John Plassard, senior equity-sales trader at Mirabaud Securities in Geneva.

"There's a rebound in commodity companies. They were hammered so much yesterday that people are looking for opportunities."

Volkswagen fell 4pc after the US Justice Department sued the German automaker, accusing it of installing illegal devices in vehicles to defeat emission tests.

Stocks in China rose yesterday in volatile trading, stabilising after weaker factory data sparked a worldwide selloff on Monday. Oil dropped to a two-week low in early trading in the US on speculation that a government report would show US crude inventories climbed last week.

Additional reporting by Bloomberg

Irish Independent

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