Friday 28 July 2017

ISEQ little changed as Europe rallies

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)
Gavin McLoughlin

Gavin McLoughlin

The ISEQ index of Irish shares was largely unchanged yesterday, closing up 0.1pc at 6,902.56.

Total Produce and Origin Enterprises were the biggest gainers, rising 3.29pc and 2.15pc respectively. Ormonde Mining and mining equipment maker Mincon were the biggest laggards, down 5.88pc and 4.72pc on what was a quiet day for the heavily weighted stocks.

Bank of Ireland closed at €7.19 in its new incarnation after the recent consolidation.

European stocks extended a rally driven by bets that the Federal Reserve won't rush to tighten its monetary policy. The Stoxx Europe 600 Index added 0.3pc at the close.

On Wednesday the benchmark jumped the most since April as Fed Chair Janet Yellen stressed that below-target inflation warrants a gradual approach to balance-sheet reduction.

In corporate news, Partners Group Holding jumped 2.2pc after the Swiss asset manager raised its full-year estimates for new client assets.

Storebrand extended its highest price since 2007 after the Norwegian insurer's results beat estimates.

In the US, most stocks rose in morning trading yesterday, sending benchmark equity indexes towards all-time highs on the back of Ms Yellen's comments.

"There is a tactical opportunity to be more risk-seeking, carry-seeking for a while as central banks pause before acting on hawkish rhetoric," said John Stopford, head of multi-asset income at Investec Asset Management in London.

"You've got a window over the summer where monetary policy tentatively remains very accommodative," he added.

Ms Yellen's gradualist tone on policy came after signals from central banks around the world that stimulative policies may no longer be needed.

Additional reporting by Bloomberg

Irish Independent

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