Business Irish

Tuesday 25 October 2016

Rally in mining shares push up European stocks, but ISEQ down

Published 10/10/2015 | 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

A RALLY in mining shares buoyed European stocks yesterday, sending them to their biggest weekly gain since July.

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Commodity companies climbed for a ninth day, the longest streak since 2000. Zinc producer Boliden jumped 13pc after Glencore cut its output of the metal by a third, while ArcelorMittal and Anglo American gained 6pc or more.

Glencore gained, taking its weekly surge to a record 36pc.

"We've seen a real rebound in sentiment and markets which has been fantastic," said Ben Kumar who helps oversee about $14bn at Seven Investment Management in London.

"There's a lot of ground to recover before we can say we're back in an environment that isn't being traded so violently. We need a good run of green, which we've seen in the Stoxx 600, just to let people know the world's not falling apart."

By the close in Dublin, the ISEQ Overall Index bucked the trend, slipping 0.62pc or 38.30 points to end the trading session at 6,136.49.

The leaders included C&C, which rose 1.1pc to €3.65, while insurance group FBD rose for the third day running to 1pc to €6.86.

On the other side of the board, the laggards included bookmakers Paddy Power, which fell 3.1pc to €98.58, while Ryanair slipped 1pc to €12.55.

The Stoxx Europe 600 Index climbed 0.3pc to 362.82 at the close of trading. The gauge posted its sixth straight gain, its longest rally since July, after minutes late yesterday from the Federal Reserve's September meeting showed officials put off a rate increase citing risks to the US economy and inflation from China.

The Stoxx 600 is up 4.3pc this week, rebounding after its worst quarterly rout since 2011.

A gauge of carmakers was also among today's biggest advancers, capping its best weekly rally since 2011. Peugeot Citroen and Volkswagen gained at least 2.8pc.

(Additional reporting by Bloomberg)

Irish Independent

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