Tuesday 27 September 2016

Markets claw back gains after record fall

Sean Duffy

Published 29/06/2016 | 02:30

Traders work on the floor as a screen displays the Dow Jones Industrial average just after the opening bell at the New York Stock Exchange
Traders work on the floor as a screen displays the Dow Jones Industrial average just after the opening bell at the New York Stock Exchange

The ISEQ Index clawed back some of the large losses incurred in the two days of market turmoil following the results of the UK referendum.

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Irish shares closed up 3.51pc yesterday, bouncing back from an almost 10pc decline on Monday.

Markets were clearly cognisant of Ireland's dependency on the UK market, but yesterday's rises will raise hopes that volatility following Brexit is contained.

Shares in Ryanair bounced back to €10.94 each - up 4.59pc. Bank of Ireland was also up 7.06pc having also lost heavily in recent days.

In London, the FTSE rallied to 6162, up 3.05pc from Monday's close. Analysts estimate that over $3 trillion has been wiped from global equity markets since Britons went to the polls.

Bank shares in the City of London recovered ground yesterday. Barclays and RBS were up 2.9pc and 6.55pc respectively. Trading on both banks was temporarily suspended on Monday after collapses in their share prices. Mirroring the Ryanair upswing, Easyjet rose 7.41 pc.

On the currency markets, the pound made marginal gains against the dollar, trading at $1.33 and was worth €1.20. Market volatility since the UK vote has seen the currency fall to a 31-year low.

In Germany, the DAX rose by 2.13pc while in France the CAC was up 2.78 pc. Spain's IBEX was up 2.55pc, an indication that markets are pleased with the weekend's election result which saw the Popular Party increase its vote and emerge as the likely senior partner in a coalition government. Stock across the continent were up for the first time since the Brexit vote, with the EuroStoxx banking index gaining 2.67pc. Crude oil was trading at $47.39 a barrel.

Irish Independent

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