Sunday 23 October 2016

Shares up despite grim economic news

Donal O'Donovan and Reuters

Published 06/10/2015 | 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

European shares rose sharply yesterday, ironically, because weak data in Europe and elsewhere reinforced expectations the broad monetary policy backdrop will remain equity-friendly, with Glencore and ArcelorMittal lifting the mining sector.

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In Dublin the ISEQ index finished at 6266.21, up 174.95 with gains for companies across the board.

The better tone helped lift some big names considerably. Shares in Aminex were up 8.7pc, PTSB stock was up 5.11pc to €4.73, Ryanair shares were up 4.62pc to €13.46, and Aryzta rose 4.37pc to €40.82.

Bank of Ireland shares ended the session up almost 4pc at 35.88 cents, and CRH, Kerry and Paddy Power were all up more than 2pc.

In the bond market, the National Treasury Management Agency will auction €1bn of government debt on October 8.

Elsewhere, the pan-European FTSEurofirst 300 index ended up 3pc and the euro zone's blue-chip Euro STOXX 50 climbed 3.3pc. Both had fallen on Friday before Wall Street rebounded to end in the black.

Euro zone business activity grew at its weakest pace in four months during September, surveys showed on yesterday.

"Data today is moderately negative for equities .... but their impact is practically neutral because of growing expectations that easing monetary policies in various countries will continue or be expanded," said Marco Vailati, head of research at Italy's Cassa Lombarda.

US stocks rose yesterday, with the S&P 500 up for the fifth day, after last week's disappointing jobs report hardened views that the Federal Reserve won't raise interest rates soon.

Irish Independent

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