Stocks rise on back of ECB speculation
Published 01/12/2015 | 02:30
European stocks pulled off a second monthly advance on bets the region's central bank will increase stimulus at this week's meeting.
By the close in Dublin, the ISEQ Overall Index was up 0.59pc, or 39.90 points, to end the trading session at 6,838.48.
The leaders on the Dublin index included speciality baker Aryzta, up 5.8pc to €44.40 as it reported a 6.1pc increase in group revenue up to €995m in the first quarter of its financial year.
Fruit company Fyffes increased 3.2pc to €1.60 while Dalata Hotel Group closed up 4.3pc to €5.15.
On the other side of the board, the laggards included Cpl Resources, which fell 1.6pc to €6.30, while insurance group FBD dropped 1.4pc to €6.85.
Elsewhere, the Stoxx Europe 600 Index rallied to a three-month high, taking its November gain to 2.7pc. Auto-related shares rose the most yesterday as the weakening euro is seen helping exporters.
Economists surveyed by Bloomberg unanimously predict the European Central Bank will expand stimulus on Thursday.
"It's all about assessing your positions ahead of the ECB this week," said Allan von Mehren, chief analyst at Danske Bank in Copenhagen.
"That will give investors some direction going into the new year. While I think [Mario] Draghi will deliver, the market has already been priced quite aggressively for a deposit-rate cut. We might get a case of people buying the rumour and selling the fact."
The Stoxx 600 increased 0.5pc to 385.43 at the close of trading in London, reversing an earlier drop of as much as 0.5pc. While commodity producers also ended up rallying yesterday, BHP Billiton bucked the trend. It extended a seven-year low, after Brazil's attorney general said the country will seek as much as 20 billion reals compensation for a dam collapse at an iron-ore venture.
(Additional reporting by Bloomberg)